Southern California Health Entities Settle for $15 Million Over Alleged Medicare Fraud

The U.S. Department of Justice has recently announced a hefty settlement involving Southern California health care providers accused of fraudulent activities. According to the U.S. Attorney’s Office, Central District of California, a conglomerate of health entities, led by former physician Mohammad Rasekhi, has agreed to pay $15 million to resolve allegations of submitting false claims through illicit practices, including kickbacks and self-referrals.

Surrendering his medical license earlier this month, Rasekhi was instrumental at the helm of Southern California Medical Center (SCMC) and its sister laboratory, Universal Diagnostic Laboratories (UDL). With him, Sheila Busheri, who served as both CEO of SCMC and UDL, also faced allegations in the scheme that, according to authorities, ran afoul of federal healthcare program guidelines, as reported by the U.S. Attorney’s Office, Central District of California. In a complicated scheme that repaid marketers to draw in Medicare and Medi-Cal beneficiaries to SCMC’s six clinics, these practices led to the settlement at the core of today’s announcement.

“Providers who exploit the Medicare, Medicaid, and TRICARE programs for their personal financial gain will be held accountable under the False Claims Act,” said U.S. Attorney Martin Estrada, as stated by the U.S. Attorney’s Office, Central District of California. Brian M. Boynton, Principal Deputy Assistant Attorney General, echoed Estrada’s sentiment stating, “Kickback and self-referral schemes risk impairing the judgment of healthcare providers and diminish the reliability of the care that they render.” This resolution seeks to uphold the sanctity of care provided to Medicare and Medicaid beneficiaries, free from the corrupt influence of financially motivated referrals…

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