United States v. St. Luke's Subacute Care Hospital, Inc.

MEMORANDUM *

Guy Seaton (“Seaton”) appeals his conviction and 78-month sentence for six counts stemming from Medicare fraud, and St. Luke’s Hospital (“StLuke’s”) (together with Seaton, “appellants”) appeals its five-year probation. We have jurisdiction under 18 U.S.C. § 1291 , and we affirm.

Because the parties are familiar with the facts, we do not recite them in detail. Prior to his indictment in this action, Sea- *713 ton was the owner and Chief Executive Officer of St. Luke’s, a nursing facility in San Leandro, California. At trial, former employees testified that Seaton instructed them to falsify nursing schedules, payroll reports, and time-cards to support Medicare reports. They also testified that Sea-ton instructed them to create a fictitious floor plan that segregated Medicare patients from non-Medicare patients and to tell auditors, falsely, that St. Luke’s assigned more-expensive registered nurses to Medicare patients and less-expensive licensed vocational nurses to non-Medicare patients.

Appellants were indicted on May 8, 2001. Count 1 — the conspiracy count— alleged that appellants inflated their cost reports and fabricated payroll reports, time-cards, and nursing…