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Owner of raided Chicago hospital free on bond

April 20, 2013

CHICAGO (AP) — A Chicago hospital owner charged in an alleged scheme to provide kickbacks for the referral of patients on Medicare and Medicaid has been freed on bond.

The Chicago Sun-Times reports (http://bit.ly/11p2XKU ) that Edward Novak was allowed to leave a federal lockup after his wife ran into a courtroom Friday clutching a $4 million check just in time to post bond.

The FBI raided Sacred Heart Hospital on Tuesday.

In the most startling allegation, federal prosecutors say at least two doctors there endangered patients by intentionally over-sedating them and performing unnecessary tracheotomies in a bid to boost profits.

So far, though, none of those arrested has been charged in connection with that allegation.

As a condition for his release, Novak will have to post another $6 million and surrender his passport.


Information from: Chicago Sun-Times, http://www.suntimes.com/index

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