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October 23, 2013 01:00 AM

Jury indicts Sacred Heart execs in alleged kickback scheme

Modern Healthcare
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    A federal grand jury indicted the CEO, three other executives and four physicians accused of running a kickback scheme at a now-defunct Chicago hospital.

    The indictment comes six months after prosecutors announced arrests and charges in the case, saying they'd rushed them in order to prevent further harm to patients.

    According to the indictment, Sacred Heart Hospital paid hundreds of thousands of dollars in kickbacks to physicians for referrals. CEO Edward Novak, Chief Financial Officer Roy Payawal, Chief Operating Officer Anthony Puorro and Vice President of Geriatric Services Noemi Velgara are charged with conspiracy to violate the anti-kickback statute.

    Novak and Payawal are also charged with paying kickbacks for patients.

    Drs. Percy May Jr., Subir Maitra, Shanin Moshiri and Rajiv Kandala are charged with referring patients in return for the bribes, disguised as legitimate payment for consulting, employment, rent and instructional stipends.

    Sacred Heart, a 96-bed hospital on the city's West Side, closed in July and its license was revoked in September.

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    • News
      • Current News
      • Providers
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      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
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