- Associated Press - Wednesday, June 28, 2017

LOS ANGELES (AP) - Prosecutors say the owners of a Los Angeles hospital have agreed to pay $42 million to settle allegations that they had improper financial relationships that could have induced doctors to refer patients for unnecessary procedures.

The U.S. Department of Justice announced the settlement with PAMC Ltd. and Pacific Alliance Medical Center Inc. on Wednesday.

The medical center said in a statement it did not acknowledge any liability and is confident it has put in place safeguards on its marketing policies and practices.

The hospital’s owners were accused of paying above-market rates to rent space in physicians’ offices.

Acting U.S. Attorney Sandra Brown in Los Angeles says patients deserve to know their doctors are making health care decisions based on medical need and not for potential financial benefit.

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