Federal authorities have arrested the owner of a Chicago hospital and four doctors regarding health care fraud, according to the Associated Press.
The U. S. Attorney's Office said the arrests were made Tuesday morning at Sacred Heart Hospital on West Franklin Boulevard in Chicago. The U.S. Attorney's Office says the alleged scheme involved kickbacks and other forms of payment for the referral of patients insured by Medicare and Medicaid.
Those arrested Tuesday morning included Sacred Heart owner and CEO Edward Novak, 58, of Park Ridge; executive vice president and chief financial officer Roy Payawal, 64, of Burr Ridge; Dr. Venkateswara Kuchipudi, 66, of Oak Brook; Dr. Percy Conrad May Jr., 75, of Chicago; Dr. Subir Maitra, 73, of Chicago; and Dr. Shanin Moshiri, 57, of Chicago.
Authorities say the five people received illegal kickbacks in exchange for the referral of patients insured by Medicare and Medicaid to their hospital.
Randall Samborn, a spokesman for the U.S. Attorney's office in Chicago, said details on the arrests and charges would be given later today.
Federal authorities have seized approximately $2 million in Medicare reimbursement payments the hospital allegedly received as a result of the kickback scheme.
