The latest deal to sell Anaheim Memorial Medical Center collapsed Thursday when state officials nixed its $57-million purchase by Pacific Health Corp., which faces allegations that it defrauded Medicare and Medi-Cal.

This was the third time in about a year that an agreement to sell the financially struggling hospital has unraveled.

Atty. Gen. Jerry Brown’s office cited several factors in the decision, including “pending criminal investigations” and a civil complaint filed last week by Los Angeles City Atty. Rocky Delgadillo accusing three hospitals of recruiting homeless people for costly and unjustified treatment.

Tustin-based for-profit Pacific Health owns two of the three, Los Angeles Metropolitan Medical Center and Tustin Hospital and Medical Center. The third, City of Angels Medical Center in Los Angeles, has a different owner.

& #8226;

Read the full

Los Angeles Times

story.