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The director and four executives of the scandal-ridden Yasuda Hospital group were arrested July 28 on suspicion of swindling the government out of 8 million yen by filing fraudulent medical expense claims, prosecutors said.

The Osaka Prefectural Government meanwhile will deprive the group hospitals of the right to acquire public funds for medical practices. Mototaka Yasuda, 77, and the four other executives under arrest are suspected of filing claims for phony medical bills to collect public funds, according to the Osaka District Public Prosecutor’s Office.

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