The Clinica Sierra Vista walk-in clinic in Delano, Google Street View photo

Local medical provider Clinica Sierra Vista has agreed to pay nearly $26 million to settle allegations it misreported its income in violation of state and federal law.

The settlement was announced Thursday by U.S. Attorney Phillip A. Talbert and California Attorney General Rob Bonta, who allege former executives at the Bakersfield-based health system submitted false information to receive excessive payments from the Medi-Cal program.

Clinica Sierra Vista is a Federally Qualified Health Center serving about 200,000 people in Kern and Fresno counties through dozens of health centers, including seven in Fresno.

The company’s new management discovered these violations after an internal investigation and voluntarily disclosed them to authorities, according to an Attorney General office’s news release.

“When companies take advantage of the Medi-Cal system, they harm patients across California who rely on the program for essential health care services,” said Attorney General Rob Bonta. “I commend the new management at Clinica Sierra Vista for coming forward, and for working with us and our partners to resolve their violations. This settlement will return the money where it belongs: to support California’s Medi-Cal program and the communities it serves. I encourage all providers to conduct regular internal investigations and self-disclose potential violations.”

The Clinica Sierra Vista board voted unanimously in November to appoint Dr. Olga Meave as the organization’s CEO — a position she had held on an interim basis since April 2022.

Meave succeeded Stacy Ferreira, former Clinica Sierra Vista HR chief, who herself took over after the April 2020 departure of former CEO Brian Harris, who was accused of unlawful discrimination and mismanagement, reported the Bakersfield Californian.

Of the total $25.98 million settlement amount, California will receive $15.59 million and the federal government will receive $10.39 million.

“It’s important for medical providers to report accurately so that taxpayers aren’t overcharged for services with their dollars,” said U.S. Attorney Talbert. “We encourage others to follow the example of Clinica Sierra Vista in self-reporting overcharges and remain committed to working cooperatively to eliminate fraud.”