College Health Enterprises Buys Pacific Hospital

Santa Fe Springs, Calif.-based College Health Enterprises has purchased Pacific Hospital of Long Beach (Calif.), now named College Hospital of Long Beach, according to an Orange County Register report.

As part of the deal, Long Beach-based managed care company Molina Healthcare will manage the hospital's acute-care services, according to the report. College Health will run two of the hospital's psychiatric units. Financial details of the acquisition were not disclosed.

Earlier this year, the U.S. attorney for the Central District of California began investigating the hospital for alleged kickbacks and improper payments. The owner, Michael C. Drobot, allegedly operated a kickback scheme through the spinal-implant distributorship, paying physicians for each spine surgery case they referred to the hospital.

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