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Feds indict 8 on fraud charges at Chicago hospital

Published: Wednesday, Oct. 23, 2013 1:00 p.m. CDT

CHICAGO (AP) — Federal prosecutors have indicted eight people on fraud charges for an alleged kickback and bribery scheme at a now-closed Chicago hospital.

U.S. Attorney Zachary T. Fardon says the owner, three executives and four physicians affiliated with Sacred Heart Hospital allegedly participated in a scheme in which physicians were paid hundreds of thousands of dollars in exchange for referring Medicare and Medicaid patients.

Five defendants were charged and arrested in April; three were charged in a 17-count indictment returned by a federal grand jury on Tuesday. Fardon announced the new charges Wednesday.

Prosecutors say the goal was to increase hospital revenue by treating more patients.

The 119-bed acute care facility on Chicago's West Side closed this summer following an FBI raid. Its license has been revoked.

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