Facilities in Los Angeles and Tustin allegedly churned thousands of indigents through their sites and billed Medicare and Medi-Cal for costly and unjustified medical procedures.
By Cara Mia DiMassa, Richard Winton and Rich Connell
Los Angeles Times Staff Writers
August 7, 2008
On a Sunday afternoon two years ago, five homeless people being dropped off on Los Angeles' skid row by an ambulance caught the attention of police officers.
The officers videotaped what they thought was a case of hospitals dumping patients in a section of the city where few would notice or care.
But as investigators began to unravel the incident, they say they found something far different: a massive scheme to defraud taxpayer-funded healthcare programs of millions of dollars by recruiting homeless patients for unnecessary medical services.