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Government Fraud Indictments Returned Against Hopsital Execs And Docs

Wed, 23 Oct 2013 16:44:37 CDT
By: AP

A federal grand jury has indicted eight people on fraud charges for an alleged kickback and bribery scheme at a now-closed Chicago hospital. U.S. Attorney Zachary Fardon says the owner, three executives and four physicians affiliated with Sacred Heart Hospital allegedly participated in a scheme in which physicians were paid hundreds of thousands of dollars in exchange for referring Medicare and Medicaid patients. Five defendants were charged and arrested in April; three were charged in a 17-count indictment returned by a federal grand jury on Tuesday. Fardon announced the new charges Wednesday. Prosecutors say the goal was to increase hospital revenue by treating more patients. The 119-bed acute care facility on Chicago's West Side closed this summer following an FBI raid. Its license has been revoked.

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