Regulatory capture

A Florida man was convicted Friday of running an 18-year, $1.3 billion health-care fraud that prosecutors called the largest such scheme ever charged by the Justice Department.
Philip Esformes, a 50-year-old Miami Beach resident, used a network of nursing homes and assisted-living facilities in South Florida to defraud U.S. government health-care programs while providing inadequate and unnecessary care to patients, prosecutors said. …

Prosecutors said Esformes bribed doctors to admit patients to the facilities he operated. The patients didn’t get appropriate care and sometimes received unnecessary services for which Esformes then billed the U.S. government. Esformes also bribed a Florida state regulator to learn about surprise inspections of company facilities ahead of time, prosecutors said.

Bloomberg