Prosecutors say two executives at Sacred Heart Hospital in Chicago cooperated with a federal investigation into an alleged kickback scheme that resulted in the arrest of the hospital's CEO, CFO and four physicians, according to a Crain's Chicago report.
In April, federal authorities arrested Sacred Heart's owner and CEO, Edward Novak, along with the CFO and four physicians for their alleged participation in a kickback scheme for Medicare and Medicaid referrals. CMS suspended its reimbursement to the hospital after the arrests, and Sacred Heart closed in July.
A court filing by prosecutors reveals that the hospital's COO, Anthony Puorro, and Noemi Velgara, vice president of geriatric services, cooperated extensively with the federal investigation into the alleged scheme. Both were indicted in October with the rest of the defendants, all of whom have pleaded not guilty. But Mr. Puorro and Ms. Velgara are not expected to go to trial, which suggests a plea bargain may be in progress, according to the report.
Trial for the case is set for Oct. 6, 2014.
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