
Image courtesy of J. Emilio Flores for The New York Times
By Solomon Moore
NY Times
Published: August 9, 2008
LOS ANGELES — An investigation into what the authorities say was a scheme that used homeless people to bilk tens of millions of dollars from federal and state health insurance programs began four years ago with a tip from a rescue mission employee.
The employee, Scott Johnson, who works for the Union Rescue Mission in the heart of Skid Row, said he had noticed vans and cars loading up homeless people.
“Sometimes they were so full of people that they put people in the trunks of cars,” Mr. Johnson said Thursday as he passed out bottles of water to the homeless. “I wondered what was going on, so I called the state authorities.”
Mr. Johnson said security cameras on the mission building captured what he initially thought were ambulances illegally discarding patients.
His tip in 2004, and those recordings, prompted state and local officials to investigate.
In October 2006, Los Angeles police officers videotaped an ambulance “dumping” five homeless patients. They later determined that the patients had been recruited as “human pawns in a scheme by hospitals, doctors, ambulance companies and others to defraud” health insurance programs, according to the city attorney’s complaint.
And on Wednesday, federal agents raided three private for-profit hospitals — Los Angeles Metropolitan Medical Center, City of Angels Medical Center, and Tustin Hospital and Medical Center in Orange County — in connection with an alleged fraud scheme involving federal Medicaid and state Medi-Cal health insurance programs. Agents arrested Dr. Rudra Sabaratnam, owner and chief executive of City of Angels Medical Center, and Estill Mitts, who is accused of recruiting patients from his Skid Row storefront church, the 7th Street Christian Day Center. Mr. Mitts posted $25,000 bond and is confined to his home. Dr. Sabaratnam posted $700,000 bail Thursday night.
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