LA hospital CEO pleads not guilty to billing fraud

Criminal Law

A Los Angeles hospital CEO has pleaded not guilty to recruiting homeless people as phony patients and billing government programs for unnecessary health services.

City of Angels CEO Dr. Rudra (ROO'-druh) Sabaratnam (sab-ah-RAT'-nahm) entered the plea Monday in U.S. District Court.

He and the operator of a Skid Row health assessment center are charged with conspiring to receive and pay kickbacks for patient referrals.

An indictment says millions of dollars were improperly billed to government programs by City of Angels and two other area hospitals.

Sabaratnam was ordered to home detention after posting $700,000 bond. If convicted, he could face 50 years in prison. His trial date was set for next month.

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