Healthcare workers conducting COVID-19 tests at a busy site in Orange County.
Orange County is facing scrutiny over its COVID-19 testing partner, 360 Clinic, amid allegations of double and triple billing practices. An internal investigation revealed that the clinic received over $3 million in taxpayer funding and is now embroiled in controversy due to uncashed checks and ignored warnings about their billing practices. With the county’s former supervisor under felony bribery charges, calls for a forensic audit and federal investigation have surfaced, intensifying the scrutiny on the handling of public funds in a critical healthcare crisis.
In a shocking turn of events, Orange County is facing serious allegations against its COVID-19 testing partner, 360 Clinic. Recent findings from an internal investigation have revealed troubling practices such as double and triple billing for testing services rendered under a county contract. This isn’t just a small slip-up; it hints at a larger problem with the handling of taxpayer money during an unprecedented pandemic.
To paint a clearer picture, 360 Clinic reportedly garnered more than $3 million in taxpayer funding from the county and likely even more through private insurance and federal reimbursements. Throughout 2020 and 2021, the company was responsible for conducting thousands of tests weekly under this contract. It’s not just chump change when we talk about the scale and urgency of COVID-19 testing during the height of the pandemic.
An even deeper mystery surrounds a cashier’s check for $523,650 that allegedly disappeared for over three years. Both 360 Clinic and the county have confirmed that the check was never cashed, and the county insists they never received it. This missing money raises pressing questions about financial oversight and accountability within county operations.
The internal investigation led by the county’s chief compliance officer, Kelly Sabet, was ignited by a tip received through the Orange County Fraud Hotline. Staff concerns about 360 Clinic’s billing practices had been raised even prior to the investigation, reflecting a growing doubt about whether the company was engaged in fraudulent actions. Internal memos indicated that the former supervisor of the county, Andrew Do, had ignored employees’ warnings about payments made to 360 Clinic for claims that were denied due to overbilling.
It doesn’t help that Andrew Do’s track record is under scrutiny, especially after being sentenced to five years in prison for felony bribery related to kickbacks from county contractors. The implications are hard to ignore: if someone at the top is playing dirty, what else might have gone unchecked?
Sabet’s investigation concluded that the county should pursue repayment from 360 Clinic for all payments deemed fraudulent. She also recommended a forensic audit of the contract to uncover the extent of any irregularities. That’s a major development, but the public remains in the dark about when the results may be revealed.
In a somewhat bewildering twist, 360 Clinic claims they were unaware of the investigation’s findings until they were contacted by outside media, challenging the credibility of the memo’s assertions. Meanwhile, Supervisor Janet Nguyen has called for a federal investigation into the situation surrounding Andrew Do and his involvement with 360 Clinic, further heightening the stakes.
Additional points of concern have emerged regarding the contract itself. Just two months after testing began, the contract terms were altered to make the county liable for claims that couldn’t be collected. It wasn’t until May 2021 that the verification of denied claims by private insurance was even required, adding another layer of confusion and potential mishandling of funds.
An astonishing case came to light where one claim had been billed and paid three times: twice by the county and once by the insurer, Blue Shield. Such discrepancies highlight serious flaws in the county’s oversight mechanisms, raising questions about how ineffectively the contract was monitored.
As this ongoing saga unfolds, it’s clear that the relationship between the county and 360 Clinic will continue to face scrutiny. Investigators have noted indications that county staff were already concerned about billing practices, suggesting that the problems weren’t as secretive as they might have hoped. Ongoing investigations and a recommendation for a forensic audit are steps in the right direction, but only time will tell how this situation resolves.
With further ties between state regulators and key players in county politics emerging, it looks like the public will need to stay tuned to see how these various threads converge in what is becoming a cautionary tale about healthcare business dealings in Orange County.
Orange County COVID Testing Vendor Under Investigation
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