Former Tulare hospital CEO Dr. Benny Benzeevi pleads no contest to corruption charges

The man at the center of the largest and most costly public corruption trial in Tulare County history pleaded no contest on Friday to six felony and two misdemeanor counts.

However, former Healthcare Conglomerate Associates' CEO Dr. Yorai “Benny” Benzeevi will likely not spend any jail time for his admitted crimes. The plea agreement requires the emergency room doctor to pay the Tulare Local Healthcare District $2.4 million in restitution, serve 120 days of house detention, and do community service and probation.

When a defendant enters a no-contest plea, they agree to accept the court's sentencing without admitting guilt.

Benzeevi could face at least five years in custody if he violates any of the plea agreement terms.

"Healthcare is truly a basic quality of life issue, and the rural health care system in California is fragile," District Attorney Tim Ward stated. "I view the Tulare Regional Medical Center as a vulnerable victim, and I am pleased the hospital and the citizens of Tulare have persevered to arrive at this significant day."

Benzeevi was facing up to 40 years in prison for multiple criminal counts during his controversial administration of Tulare Regional Medical Center from 2013-2017. When charges were filed in 2020, the district attorney's office had estimated that Benzeevi could have been ordered to pay up to $20 million in restitution to the hospital district if convicted on all counts.

Tulare County Superior Judge Michael Sheltzer ordered no jail time for Benzeevi so he could continue to work and pay restitution.

Benzeevi will return to court in July for the official sentencing hearing.

It is unclear how the plea will affect Benzeevi's medical license. According to the Medical Board of California, Benzeevi's medical license is valid through 2025 and is based in Sherman Oaks.

Tulare Local Healthcare District President Kevin Northcraft was grateful for the "unwavering pursuit of justice" by the district attorney's office, he said in a statement to the Times-Delta/Advance-Register.

Benzeevi and his co-defendants inflicted "immeasurable damage" on Tulare's healthcare system, Northcraft said.

In a statement, Citizens for Hospital Accountability, a grassroots group of Tulare citizens who raised concerns about HCCA and spearheaded a recall election against HCCA supporters on the healthcare district board, described the court hearing as "monumental."

"On this day, it isn’t just a saying that justice shall prevail, it is reality," the Citizens for Hospital Accountability wrote. "There can be no celebration that any of this happened at all, but there is a celebration to know we have all helped to put an end to it."

The statement also praised Ward and the prosecutors and investigators who worked on the case.

"Moving forward, our efforts and resources will be focused on the remaining defendant in a combined quest for justice for these victims," Ward stated.

Where do the other defendants stand?

Benzeevi's plea deal was similar to co-defendant Alan Germany, the former HCCA CFO who, in December 2023, pleaded guilty to charges of conflict of interest while running the hospital but avoided jail time after he agreed to pay $150,000 in restitution, serve 540 hours of community service and write a letter of apology to the hospital district for his conduct.

Deputy District Attorney Trevor Holly had wanted Germany to spend one year in jail for his crimes, but Sheltzer ruled that the first-time, non-violent offender did not qualify for incarceration.

The final defendant in the sprawling corruption case, former HCCA attorney Bruce Greene, is expected back in court in May. In January 2023, Greene's firm settled a civil lawsuit with the Tulare hospital district for $3 million.

It is unknown if Germany and Benzeevi have agreed to testify against Greene, who is facing charges of conflict of interest, grand theft, conspiracy, money laundering, and multiple counts of embezzlement by a public officer.

The case against HCCA

In 2020, Benzeevi, Germany, and Greene were charged with more than 80 combined crimes, including grand theft, conspiracy, money laundering, and multiple counts of embezzlement by a public officer.

Those crimes revolved around HCCA's controversial 2013-2017 administration of Tulare Regional Medical Center that led to patient deaths, a failed bond measure, recall elections, payrolls being missed, closure of the hospital, bankruptcy, and the eventual 2018 takeover and reopening by Adventist Health of the Tulare public hospital.

"It is alleged that the defendants used control of public hospital entities to enrich themselves through the improper use of taxpayer and private loans, and other public integrity crimes,"  the Tulare County District Attorney's Office wrote in a 2020 press release announcing the charges.

In 2020, Ward estimated prosecutors spent $1.5 million in staff hours and overtime, travel, and associated costs during the 13,500 hours of the investigation.

That total does not include the court time since the charges were filed. A series of the trio's lawyers battled the DA's office over frozen bank accounts, conflicts of interest with the Tulare County District Attorney, and defense attorney billing issues as the case went on for more than three years.

This article originally appeared on The Record: Former Tulare hospital CEO Benny Benzeevi pleads no contest