The state’s labor commissioner sued Pacific Health Corp. and its hospitals, accusing them of failing to pay employees, writing bounced paychecks, and taking money from payroll to pay for employee benefits but using the funds to make payments on a settlement with the federal government over Medicare and Medi-Cal fraud charges.

Labor Commissioner Julie Su is seeking almost $100 million in the lawsuit.

Tustin-based Pacific Health announced this month that it will close four hospitals, including the 142-bed Anaheim General Hospital and an affiliated 31-bed skilled nursing facility in Buena Park.

Staff Report