ALLEGED ABUSES AT FAMILY CLINIC SPUR CRACKDOWN.

Byline: Lee Condon and Peter Hartlaub Daily News Staff Writers

State health officials said Wednesday that they are toughening oversight of a family planning program, which a Paramount clinic is accused of falsely billing for exams conducted on children as young as 9 without parental consent.

The clinic is under investigation after allegations that it recruited more than 100 youngsters a day on the streets of south Los Angeles and nearby communities, luring them with money, cigarettes and beer, and then took blood tests or gave them condoms.

The Paramount Medical Center's doctor, Candace Chang, is suspected of child endangerment, health care benefit fraud and conspiracy to commit those offenses, according to a search warrant request obtained Wednesday.

``We are in the process of developing a monitoring program that identifies overexpenditures and overbilling. That's in the works,'' said Department of Health Services spokeswoman Lea Brooks.

According to court documents, Chang denied to the investigators that she had done anything illegal. No one answered the phone Wednesday at the Paramount Medical Center, and Chang could not be reached for comment.

The department's 2-year-old Family Planning Access Care and Treatment Program has not encountered any similar allegations, Brooks said.

``This is a new program and this is the first complaint we have had. This isn't a widespread problem,'' Brooks said. ``Any insurance provider has to trust doctors. There's going to be bad seeds.''

Under state law, children do not need a parent's consent to get family planning services. There is no minimum age set, but children are eligible when they are mature enough to reproduce - a determination made by a doctor with no oversight.

``There isn't a minimum age. Under the age of 12 is very unusual, but it is possible,'' Brooks said.

In Superior Court documents filed in a search warrant request, investigators said the Paramount clinic solicited children as young as 9 in order to submit bills to the state.

Brooks said the health department is investigating Paramount for its Family PACT and Medi-Cal billings, adding that the clinic's alleged recruitment efforts were unusual.

``I can't imagine that being an acceptable practice,'' Brooks said. ``I would think that if a lot of claims came in with 9- or 10-year-old kids it would definitely be a red flag.''

The investigation

Sheriff's deputies received a tip in late August from a man who said six girls between 9 and 14 were offered $10 to go to the clinic, nine miles away from their homes.

``The six girls were crammed into a compact vehicle that had neither enough seating or seat belts for all the passengers,'' investigators said in court papers filed in support of a search warrant request.

Chang is accused of employing about a dozen ``runners'' who would drive to low-income areas in search of children, court papers said. One runner told a detective he made from $80 to $500 per day.

Investigators said in court papers that the children were enticed with money and other gifts, such as cigarettes and beer, so they could be brought to the clinic ``to inflate medical bills for procedures not performed.''

According to court documents, patients routinely were asked to lie about their ages and names, and instructed not to tell their parents about the incidents.

Beer and cigarettes

On Sept. 4, according to court records, Chang came to the Paramount sheriff's station and admitted that drivers had offered to buy beer and cigarettes for underage patients. But she said she found out only after interviewing patients.

Detectives told the judge in court papers that ``we saw drivers escorting youthful patients to a nearby liquor store.''

Detectives interviewed at least two groups of children before asking for a search warrant. The second group comprised four boys from Paramount, ages 12 to 17, who were recruited by a runner.

While the six girls had blood drawn and were asked whether they wanted a pap smear, investigators said the boys were asked to fill out a five-page form, were offered a handful of condoms and then released.

Deputy John McBride of the Los Angeles County Sheriff's Department said detectives are continuing an investigation. ``Other than that, we're not putting out any information because it might jeopardize the investigation,'' McBride said.

Damaging practice

Nancy Sasaki, president and chief executive officer of Planned Parenthood of Los Angeles, said Paramount's recruitment efforts were way out of bounds.

``I think it's an appalling way to treat people and to run a business,'' Sasaki said. ``We are definitely opposed to any types of coercive efforts. Family planning needs to be an individual's choice.''

Sasaki was particularly concerned about the young girls who were recruited, saying she hopes it does not deter them from seeking family planning services when they are older and actually need them.

``I imagine they are very confused, thinking, What is this that just happened to me,'' Sasaki said.

Sasaki said the Family PACT program is ``excellent,'' but ``they may be able to put in better checks and balances.''