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Tuesday, Mar 19, 2024
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Tustin Hospital Closes, Lays Off Staff

The 177-bed Newport Specialty Hospital laid off its staff of 147 workers and was set to close 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 the allegations.

–Vita Reed

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