Michael Drobot

Last updated

Michael Drobot is a convicted felon who pleaded guilty to orchestrating the largest fraud in the history of California state. [1] Between 1978 and 2013, Drobot managed 28 hospitals along the East Coast, including the Mount Sinai Roosevelt in New York (formerly the Roosevelt Medical Center). He also owned eight hospitals, including Pacific Hospital of Long Beach, (now College Medical Center) and two health maintenance organizations.

Contents

Career

Early years in hospital administration

Drobot spent his early years in Detroit, Michigan, before joining the United States Navy during the Vietnam War. During his time in the Navy, Drobot managed the Naval Hospital in Oakland, California. Upon his discharge from the Navy, Drobot pursued a career in hospital management by first obtaining an MBA in hospital administration from George Washington University.

Healthcare administration in California

Drobot's Concept Health Group, Inc. acquired the Healthcare Medical Center of Tustin in July 1990. [2] Drobot had been the executive director of Healthcare Medical Center from 1980 to 1984. Under Drobot, Concept Healthcare expanded the hospital’s services deeper into the Irvine area, and added new centers for oncology and sports medicine.

In the course of his 35 years career in healthcare, Drobot had the longest association with the Pacific Hospital of Long Beach, which he owned and managed from 1997 to 2013, when it was sold to Molina Healthcare and became College Medical Center. [3] [4] [5] Whilst CEO of Pacific Hospital, the hospital was nationally recognized for infection control measures. [6] [7] [8] The hospital’s focus on a germ free environment garnered a Certificate of Special Congressional Recognition in 2009. [9] [10] Pacific Hospital of Long Beach received an award from the Southern California Patient Safety First (SCPSF) for reducing sepsis mortality and hospital associated infection rates from 2010 to 2012. [11] [12]

In 2013, Pacific Hospital of Long Beach was accredited by National Integrated Accreditation of Healthcare Organizations [13] [14] [15] [16] for meeting its standards of patient care and quality management. In 2013, the hospital was also designated as ISO 9001:3008 compliant by DNV Healthcare, [17] an accreditor of US hospitals integrating ISO 9001 quality compliance with the Medicare Conditions of Participation.

During a criminal investigation, in February 2014, Drobot was charged by the FBI with orchestrating a wide-ranging conspiracy and paying illegal kickbacks. [18] [19] As part of the indictment, Drobot was charged with bribing Senator Ron Calderon to preserve California’s spinal pass through law. [20] [21] [22] [23] Senator Calderon was separately indicted by the FBI for accepting bribes and kickbacks from Drobot and others. Drobot signed a plea agreement agreeing to cooperate in the government’s ongoing investigation of Senator Calderon and his brother, Tom Calderon, and also into the healthcare fraud scheme known as Operation Spinal Cap. [24] [25] [26]

In October 2014, Drobot, along with his business partners, was sued for using counterfeit screws and hardware in spinal surgeries [27] performed at Pacific Hospital and other area hospitals. At a court hearing on February 20, 2015, Los Angeles Superior Court Judge Elihu M. Berle rejected the claims against the group accused of using counterfeit surgical screws as in 29 out of 32 cases the plaintiffs were never treated at Pacific Hospital. [28] Drobot filed a $50 million defamation suit in October 2014 against attorneys Brian Kabateck and Robert Hutchinson and the law firms of Kabateck Brown Kellner, Cotchett Pitre & McCarthy, and Knox Ricksen. [29] In April 2015, Drobot and his company Healthsmart Pacific, Inc. filed a lawsuit against 30 individuals and their attorneys for falsely and maliciously claiming that Drobot and Healthsmart’s former hospital, Pacific Hospital of Long Beach, harmed them via a non-existent "counterfeit screw" conspiracy. Drobot has agreed to cooperate fully with prosecutors in a case that U.S. attorney’s office spokesman, Thom Mrozek, has said "remains active and ongoing." [30]

Related Research Articles

<span class="mw-page-title-main">HCA Healthcare</span> American healthcare facilities company

HCA Healthcare, Inc. is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owned and operated 186 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics in 21 states and the United Kingdom. As of 2023, HCA Healthcare is ranked #66 on the Fortune 500 rankings of the largest United States corporations by total revenue.

<span class="mw-page-title-main">Princess Alexandra Hospital, Brisbane</span> Hospital in Brisbane, Queensland, Australia

The Princess Alexandra Hospital (PAH) is a major Australian teaching hospital of the University of Queensland, located in Brisbane, Queensland. It is a tertiary level teaching hospital with all major medical and surgical specialities onsite except for obstetrics, gynaecology, paediatrics, and medical genetics. It has a catchment population of 1.6 million people with 1038 beds and 5,800 full-time equivalent staff. In 2005, the hospital received Magnet Recognition.

<span class="mw-page-title-main">Tenet Healthcare</span> American healthcare company

Tenet Healthcare Corporation is a for-profit multinational healthcare services company based in Dallas, Texas, United States. Through its brands, subsidiaries, joint ventures, and partnerships, including United Surgical Partners International (USPI), the company operates 65 hospitals and over 450 healthcare facilities. Tenet also operates Conifer Health Solutions, which provides healthcare support services to health systems and other clients.

<span class="mw-page-title-main">Apollo Hospitals</span> Indian hospital chain

Apollo Hospitals Enterprise Limited is an Indian multinational healthcare group headquartered in Chennai. It is the largest for-profit private hospital network in India, with a network of 71 owned and managed hospitals. Along with the eponymous hospital chain, the company also operates pharmacies, primary care and diagnostic centres, telehealth clinics, and digital healthcare services among others through its subsidiaries.

<span class="mw-page-title-main">Community Medical Center Long Beach</span> Hospital in California, United States

Community Hospital Long Beach is an acute care hospital in Long Beach, California. After closing on July 3, 2018, it reopened on Monday, January 4, 2021 under a new operator Molina Wu Network LLC.

<span class="mw-page-title-main">Ron Calderon</span> American politician

Ronald Steven Calderon is a former Democratic California State Senator from the 30th Senate District. Calderon is also known for receiving bribes from Michael Drobot.

Prem N. Reddy is a cardiologist and an owner of Prime Healthcare Services, Inc., which owns 45 hospitals.

St. Mary Medical Center (SMMC) is a hospital in Long Beach, California, US. It is currently operated by Dignity Health. SMMC has all private acute care rooms for patients.

In the United States, Medicare fraud is the claiming of Medicare health care reimbursement to which the claimant is not entitled. There are many different types of Medicare fraud, all of which have the same goal: to collect money from the Medicare program illegitimately.

Prime Healthcare Services is a United States privately held healthcare company. It was established in 2001, by chairman and CEO Prem Reddy, MD, and operates 45 hospitals in 14 states. It is affiliated with the nonprofit Prime Healthcare Foundation.

Due to the near-universal desire for safe and good quality healthcare, there is a growing interest in international healthcare accreditation. Providing healthcare, especially of an adequate standard, is a complex and challenging process. Healthcare is a vital and emotive issue—its importance pervades all aspects of societies, and it has medical, social, political, ethical, business, and financial ramifications. In any part of the world healthcare services can be provided either by the public sector or by the private sector, or by a combination of both, and the site of delivery of healthcare can be located in hospitals or be accessed through practitioners working in the community, such as general medical practitioners and dental surgeons.

<span class="mw-page-title-main">California Department of Insurance</span>

The California Department of Insurance (CDI), established in 1868, is the agency charged with overseeing insurance regulations, enforcing statutes mandating consumer protections, educating consumers, and fostering the stability of insurance markets in California. The CDI has authority over how the insurance industry conducts business within California, and licenses and regulates the rates and practices of insurance companies, agents, and brokers in the state.

Veradigm is a publicly traded American company that provides physician practices, hospitals, and other healthcare providers with practice management and electronic health record (EHR) technology. Veradigm also provides products for patient engagement and care coordination, as well as financial and analytics technology. The company has more than 180,000 physician users and has products in 2,700 hospitals and 13,000 extended care organizations. The company formally changed its name from Allscripts to Veradigm in January 2023.

A case of Medicaid fraud was carried out in 2010 by an Armenian-American organized crime group called the Mirzoyan–Terdjanian organization. The scam involved a crime syndicate which created 118 fake clinics in 25 states and used stolen medical license numbers of real doctors and matched them to legitimate Medicare patients whose names and billing information were also stolen. The group submitted more than $163 million in claims and received $35 million of that before they were caught. Prosecutors charged 73 individuals in several states with allegations of racketeering conspiracy, bank fraud, money laundering and identity theft.

Health care fraud includes "snake oil" marketing, health insurance fraud, drug fraud, and medical fraud. Health insurance fraud occurs when a company or an individual defrauds an insurer or government health care program, such as Medicare or equivalent State programs. The manner in which this is done varies, and persons engaging in fraud are always seeking new ways to circumvent the law. Damages from fraud can be recovered by use of the False Claims Act, most commonly under the qui tam provisions which rewards an individual for being a "whistleblower", or relator (law).

Pharmaceutical fraud is when pharmaceutical companies engage in illegal, fraudulent activities to the detriment of patients and/or insurers. Examples include counterfeit drugs that do not contain the active ingredient, false claims in packaging and marketing, suppression of negative information regarding the efficacy or safety of the drug, and violating pricing regulations.

<span class="mw-page-title-main">College of Osteopathic Medicine of the Pacific</span> Medical school in Pomona, California, U.S.

The College of Osteopathic Medicine of the Pacific (COMP) is a private, non-profit medical school for osteopathic medicine located in downtown Pomona, in the U.S. state of California. The college opened in 1977 as the only osteopathic medical school west of the Rocky Mountains. COMP was the founding program of Western University of Health Sciences (WesternU), which now has 8 colleges in addition to COMP, each offering professional degrees in various fields of healthcare. COMP has a single 4-year program, conferring the Doctor of Osteopathic Medicine (D.O.) degree. Graduates are eligible to practice medicine in all 50 states and more than 85 countries.

College Medical Center, is a community-based teaching hospital located in Long Beach, California. It is accredited by the Joint Commission on Accreditation of Healthcare Organizations. It was purchased by Santa Fe Springs-based healthcare management company College Health Enterprises Inc., in October 2013 and renamed College Medical Center. This purchase joined the hospital with College Hospital Cerritos and College Hospital Costa Mesa as affiliates of College Health Enterprises.

Anaheim General Hospital was a 142-bed hospital located at 3350 W Ball Road in Anaheim, California. It was owned and operated by Tustin-based Pacific Health Corp, and included emergency and acute care.

References

  1. "Long Beach Pacific Hospital fraud called largest in California history". 2014-02-21.
  2. Woodyard, Chris (July 7, 1990). "Tustin Hospital Acquired by Washington Company". Los Angeles Times. Retrieved April 15, 2015.
  3. "Pacific Hospital of Long Beach". Pacific Hospital of Long Beach. Retrieved April 1, 2015.
  4. Maio, Pat (October 8, 2013). "Health chain buys Pacific Hospital of Long Beach". The Orange County Register. Retrieved April 13, 2015.
  5. Woodyard, Chris (July 7, 1990). "Tustin Hospital Acquired by Washington Company". Los Angeles Times. Retrieved April 15, 2015.
  6. Sarah Varney (March 17, 2011). "Preventing Hospital-Acquired Infections". The California Report (Podcast). KQED Public Radio. Retrieved April 14, 2015.
  7. Varney, Sarah (March 28, 2011). "Hospitals Face New Pressure To Cut Infection Rates". NPR. Retrieved April 15, 2015.
  8. "Welcome to Molina Healthcare of California".
  9. "Pacific Hospital Receives Congressional Award for During International Infection Prevention Week". Pacific Hospital of Long Beach. April 23, 2013. Retrieved April 1, 2015.
  10. "WELCOME TO THE SOUTHERN CALIFORNIA PATIENT SAFETY FIRST (SCPSF) COLLABORATIVE RESOURCE PAGE!" (Press release). Hospital Association of Southern California: nhfca.org . Retrieved April 14, 2015.
  11. Floressantos, Francisco. "Pacific Hospital Long Beach – Reducing Hospital-Acquired Infections Across the Board". California HealthCare News. Retrieved April 30, 2015.
  12. How to stop hospital infections on YouTube
  13. Pizzi, Richard (September 29, 2008). "Medicare approves new hospital accreditation organization". Healthcare Financial. Retrieved April 13, 2015.
  14. "DNV Healthcare Inc's Accreditation Program for Hospitals Approved by CMS" (PDF) (Press release). nhfca.org. April 29, 2009. Retrieved April 30, 2015.
  15. Floressantos, Francisco. "Pacific Hospital Long Beach – Reducing Hospital-Acquired Infections Across the Board". California HealthCare News. Retrieved April 30, 2015.
  16. How to stop hospital infections on YouTube
  17. Kenney, Lynn (2013). "HOSPITAL ACCREDITING ORGANIZATIONS OFFER DIFFERENT APPROACHES TO THE SURVEY PROCESS". American Hospital Association. Archived from the original on April 29, 2015. Retrieved April 30, 2015.
  18. "Former Owner of Long Beach Hospital Charged in Health Care Fraud Scheme That Paid Tens of Millions of Dollars in Kickbacks for Referrals for Spinal Surgeries Billed to Workers' Comp Programs" (Press release). Central District of California: FBI.gov. February 21, 2014. Retrieved April 14, 2015.
  19. Edwards, Andrew (April 24, 2014). "Former Pacific Hospital owner Michael Drobot pleads guilty in fraud case". Press-Telegram. Retrieved April 15, 2015.
  20. "California State Senator Ronald Calderon Charged with Taking Bribes in Exchange for Official Acts on Behalf of Hospital Owner and Independent Film Studio That was Actually an FBI Front" (Press release). Central District of California: FBI.gov. February 21, 2014.
  21. Aguilera, Elizabeth (February 21, 2014). "A Calderon connection: Ex-hospital chief Michael Drobot admits to bribery, conspiracy". 89.3KPCC. Retrieved April 25, 2015.
  22. Aaronson, Trevor (October 30, 2013). "FBI: California state senator aided alleged multimillion-dollar fraud". Aljazeera America. Retrieved April 20, 2015.
  23. Rosenhall, Laurel (June 14, 2013). "California lawmakers tussled over payments for spinal implants". The Sacramento Bee. Retrieved April 20, 2015.
  24. Thompson, Authur (2001). Crafting and Executing Strategy: The Quest for Competitive Advantage . McGraw-Hill/Irvin. ISBN   9780072319804.
  25. Coker, Mike (February 25, 2014). "Michael D. Drobot Signs Plea Deal to Testify Against Slimed Legislator Ron Calderon". OCWeekly. Retrieved April 15, 2015.
  26. "Operation "Spinal Cap" - Former Long Beach Hospital Owner Charged in $500 Million Scheme" (Press release). California Statewide Law Enforcement Association for Lodge #77: CSLEA Management. February 25, 2014.{{cite press release}}: CS1 maint: location (link)
  27. Foshay, Karen (October 17, 2014). "Spinal surgery patients file lawsuits alleging counterfeit hardware was implanted in their spines". 89.3KPCC. Retrieved April 15, 2015.
  28. Coker, Mike (March 6, 2015). "Michael D. Drobot and His Former Pacific Hospital of Long Beach Win a Round in Court". OCWeekly. Retrieved April 15, 2015.
  29. Coker, Mike (October 28, 2014). "Michael D. Drobot of Pacific Hospital Fame Files $50 mil Defamation Suit Against Lawyers". OCWeekly. Retrieved April 15, 2015.
  30. "Ex-hospital executive in kickback scheme looks to spread the blame". 13 April 2015.