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Chicago hospital cooperating after arrests

Published: Tuesday, April 16, 2013 12:30 p.m. CDT • Updated: Tuesday, April 16, 2013 2:04 p.m. CDT

CHICAGO (AP) — Officials at a Chicago hospital say they're cooperating with law enforcement after staff arrests related to an alleged kickback conspiracy.

The arrests happened Tuesday at Sacred Heart Hospital. Authorities arrested hospital owner Edward Novak, as well as another executive and four doctors. Hospital Chief Nursing Officer Jim Bailey says the hospital continues to provide ongoing care. He says the hospital has no additional information on the investigation.

The U.S. Attorney's Office says the alleged scheme involved kickbacks for the referral of patients insured by Medicare and Medicaid.

The investigation alleges that at least one doctor performed unneeded procedures.

Prosecutors say about $2 million in Medicare reimbursement payments were seized Tuesday from various bank accounts.

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