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Pacific Health Corporation Hospital Chain Fined $7 Million for Bouncing Employee Payroll Checks And Not Sending Payroll Deductio

Posted Mar 15 2013 4:38pm

If you remember back Pacific Health Corporation was involved in the medical billing scam with using the Homeless.image  The corporation pleaded guilty and paid $16.5 million in which 3 of the company hospitals were involved.  Also there’s Anaheim General which was bought by Pacific Health who a few years ago lost and then regained their accreditation.  Here’s a couple back links on the history.

Anaheim General Hospital Up for Sale – Booted The CEO, Got Our Accreditation Back And Are Ready to Start Taking Offers…
Patient Dumping Back in the News – Hospital to Pay fine

Bellflower Medical Center began bouncing payroll checks in September of last year.  In addition, the company was deducting premiums for benefits but not paying the insurance providers either.  BD


California labor officials have fined a Southern California hospital chain, Pacific Health Corp., more than $7 million for not paying employee wages and bouncing payroll checks.

The company operates the Los Angeles Metropolitan Medical Center, Tustin Hospital, Newport Specialty Hospital, Bellflower Medical Center and Anaheim General Hospital.

All of the locations were cited except the Newport Beach facility.

The company was fined $524,300 for late payments and payments with checks from accounts with insufficient funds. An additional $6.5 million in penalties was for failing to provide complete and accurate itemized wage statements to workers.

State Labor Commissioner Julie A. Su said her staff began an investigation of Pacific Health in September when an anonymous caller said Bellflower Medical Center had been bouncing checks. The labor commissioner's office received similar complaints last month. A subsequent probe revealed that the employer was deducting premiums for benefits from employees' paychecks but not passing the funds along to insurance providers.

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