The Region : Firm Admits Fraud Guilt

The Pasadena-based Paracelsus Healthcare Corp. pleaded guilty to mail fraud before U.S. District Judge Robert J. Kelleher in connection with Medicare cost reports that failed to disclose business activities with related companies, U.S. Atty. Robert C. Bonner announced. The cost reports also included claims for expenses in acquiring new hospitals and other items not related to servicing patients, according to Assistant U.S. Atty. Brian J. Hennigan. The corporation, which is owned by a West German doctor and operates 26 hospitals in the United States as well as 16 in Europe, will reimburse the government $4.45 million under the plea agreement. It will also provide $100,000 in free medical services through its affiliated hospitals.