Surabhan Ratanasen v. State of California, Department of Health Services

Surabhan Ratanasen, a doctor who filed for bankruptcy under Chapter 11, appeals the district court’s order affirming the bankruptcy court’s finding that Ratanasen owed the California Department of Health Services $125,789 under the Medi-Cal program based on an audit conducted through sampling and extrapolation. We find the use of such audit methods proper and that Ratanasen was afforded an opportunity to rebut the audit results, and we affirm the district court.

FACTS AND PROCEEDINGS BELOW

Ratanasen, a physician providing services under the Medi-Cal program, was the subject of an investigation by the California Department of Justice (“DOJ”) Medi-Cal fraud unit between October, 1984 and March, 1987. About 275 patient files were seized from the doctor’s office in November, 1986; he later voluntarily released a number of additional files to investigators.

Felony charges of presenting false claims in violation of California Welfare and Institutions Code section 14107 were filed against Ratanasen in May, 1987.

In December of 1986, the Department of Health Services (“DHS”) audited claims for payments filed by Ratanasen between May, 1984 and March, 1986. Prior to the final audit…