In the Courts: Nursing Home, Physicians Settle Allegations That They Transferred Patients for Unnecessary Services

A nursing facility and two physicians who worked there have paid more than $3.5 million to resolve allegations that they engaged in a scheme to recruit patients from Los Angeles's Skid Row, transfer them to a hospital for unnecessary medical services, and then transfer them to the nursing facility for medically unnecessary stays, according to a September 9, 2016, news release from the U.S. Attorney's Office for the Central District of California.

According to the release, the case was related to "a large-scale scheme to defraud Medicare and Medi-Cal through the illegal recruitment of Skid Row residents for medically unnecessary medical procedures at area hospitals and medically unnecessary stays at nursing homes." Skid Row is home to a...