Orange County Business Journal

Newport Specialty Hospital to Close This Week, Furlough 147

Vita Reed Wednesday, February 12, 2014

177-bed Newport Specialty Hospital will lay off its staff of 147 workers and close on Feb. 15, according to a state filing.

Newport Specialty provided long-term acute care and had a sub-acute pediatric unit.

Its owner, Pacific Health Corp., announced last April that it would close Newport Specialty and hospitals in Los Angeles and Bellflower.

Pacific Health officials said they were shuttering the facilities in part because of legal costs stemming from allegations that the hospital operator recruited homeless patients to charge Medicare and Medi-Cal for unnecessary care. The company paid $16.5 million in fines to the federal government in August 2012 to resolve those allegations.