Shasta Regional Medical Center (Redding, California)
Encyclopedia
Shasta Regional Medical Center, formerly known as Redding Medical Center, is one of two major hospitals that are located in Redding, California
Redding, California
Redding is a city in far-Northern California. It is the county seat of Shasta County, California, USA. With a population of 89,861, according to the 2010 Census...

. It opened in 1945 and currently has 246 beds with an acute care facility and has become a regional medical center serving far Northern California. It is also the first fully accredited accredited chest pain center in northern California.

History

It was purchased by Tenet Healthcare Corporation
Tenet Healthcare
Tenet Healthcare Corporation, an investor-owned health-care delivery systems company based in Dallas, Texas. THC owns and operates 49 acute-care hospitals in 11 states and 90 outpatient centers in 12 states, with a majority of these hospitals in California, Florida and Texas...

 in 1976 and renamed Redding Medical Center. In 2002, amid a federal investigation of two cardiologists at the hospital, Drs. Chae Hyun Moon and Fidel Realyvasquez, and as part of a settlement with federal regulators, Tenet Healthcare Corporation
Tenet Healthcare
Tenet Healthcare Corporation, an investor-owned health-care delivery systems company based in Dallas, Texas. THC owns and operates 49 acute-care hospitals in 11 states and 90 outpatient centers in 12 states, with a majority of these hospitals in California, Florida and Texas...

 was compelled to sell the hospital to Hospital Partners of America for $60 million USD in 2004. Hospital Partners of America then renamed the hospital to its current name of Shasta Regional Medical Center and took measures to insure that this incident would not occur in the future.

Hospital Partners of America went into bankruptcy in 2008, and the hospital operations were taken over by Prime Healthcare Services
Prime Healthcare Services
Prime Healthcare Services is a hospital management company in Southern California. Founded by Dr. Prem Reddy in 2001, it is based in Ontario, California...

.

Unnecessary care and billing

At Redding, the early-2000s investigation, raid and litigation were prompted because "physicians undertook large volumes of inappropriate and unnecessary procedures on largely healthy patients". The investigation into Moon and Realyvasquez was the result of multiple whistleblower lawsuits filed under the Federal False Claims Act
False Claims Act
The False Claims Act is an American federal law that imposes liability on persons and companies who defraud governmental programs. The law includes a "qui tam" provision that allows people who are not affiliated with the government to file actions on behalf of the government...

 alleging unnecessary medical procedures. Catholic Priest John Corapi, Joseph Zerga and Redding physician Patrick Campbell split 15% of the total $62.55 million dollar settlement.

Tenet had already agreed to pay $54 million in 2003 to settle the federal case without admitting any wrongdoing but with an agreement for new oversight procedures for physicians and staff. In 2004, Tenet established a $395 million fund for 769 cardiac patients to settle civil suits relating to procedures performed by Moon and Realyvasquez.

There is also evidence that Prime Healthcare Services
Prime Healthcare Services
Prime Healthcare Services is a hospital management company in Southern California. Founded by Dr. Prem Reddy in 2001, it is based in Ontario, California...

 engages in upcoding elderly patients to malnutrition
Malnutrition
Malnutrition is the condition that results from taking an unbalanced diet in which certain nutrients are lacking, in excess , or in the wrong proportions....

. At Shasta Regional Medical Center, Prime reported 16.1% of their Medicare
Medicare (United States)
Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other...

 patients suffered from kwashiorkor
Kwashiorkor
Kwashiorkor is an acute form of childhood protein-energy malnutrition characterized by edema, irritability, anorexia, ulcerating dermatoses, and an enlarged liver with fatty infiltrates. The presence of edema caused by poor nutrition defines kwashiorkor...

. The state of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 average for Medicare
Medicare (United States)
Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other...

 patients is 0.2% suffering from kwashiorkor
Kwashiorkor
Kwashiorkor is an acute form of childhood protein-energy malnutrition characterized by edema, irritability, anorexia, ulcerating dermatoses, and an enlarged liver with fatty infiltrates. The presence of edema caused by poor nutrition defines kwashiorkor...

. Prime Healthcare Services
Prime Healthcare Services
Prime Healthcare Services is a hospital management company in Southern California. Founded by Dr. Prem Reddy in 2001, it is based in Ontario, California...

 is currently being investigated for Medicare fraud
Medicare Fraud
In the United States, Medicare fraud is a general term that refers to an individual or corporation that seeks to collect Medicare health care reimbursement under false pretenses...

 by United States Department of Health and Human Services
United States Department of Health and Human Services
The United States Department of Health and Human Services is a Cabinet department of the United States government with the goal of protecting the health of all Americans and providing essential human services. Its motto is "Improving the health, safety, and well-being of America"...

 and the California Department of Justice
California Department of Justice
The California Department of Justice is the department in the California executive branch under the leadership of the California Attorney General.-Description:It has 5344 employees and a budget of $791 million...

.
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