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360 PACE drops plans for a comprehensive senior health center in Westminster

May 8, 2025

Plans for a new senior health center in Westminster have been dropped in the aftermath of allegations that the developers are linked to a separate program accused of health care fraud.

Owners of 360 PACE announced Wednesday, May 7, they have withdrawn their application to CalOptima Health, Orange County’s insurance plan for the poor, and to the state Department of Health Care Services for the new center after spending millions on the nearly completed site.

In an emailed statement, 360 PACE attributed the decision to “the ongoing financial burden of maintaining an operational facility without active participants” as well as “regulatory delays pushing us past our anticipated July 1 launch into 2026 or later.” The company would not answer any questions beyond the statement.

The CalOptima board of directors on Feb. 6 rescinded its 2023 endorsement of 360 PACE based on allegations of health care fraud against what staff members called an “affiliate,” 360 Health, which conducted mass COVID testing for the county. CalOptima officials left the door open to reconsider its action upon further investigation, but 360 PACE gave up.

CalOptima’s endorsement was needed to secure state and federal approval of the 360 PACE center, which is 95% complete in Westminster’s Little Saigon at a cost of more than $5 million.

The center would have been based on a state model as a “program of all-inclusive care for the elderly,” or PACE. That model operates as a one-shop stop for health and other services aimed at keeping senior citizens at home rather than at a nursing facility.

PACE programs are funded by Medicare and Medicaid dollars and must be approved by the state Department of Health Care Services and the federal Centers for Medicare and Medicaid Services.

“This was a difficult choice,” company officials said, “as 360 PACE had invested years of its time, millions of dollars and developed a program that would provide culturally competent care to underserved seniors, especially Vietnamese and API populations in Orange County.”

They continued, “despite having a facility ready to serve the community, we’ve faced numerous regulatory delays and bureaucratic hurdles that made timely progress extremely challenging.”

The company could no longer afford to keep the center operational after sitting vacant for four years, they said. “The emotional and financial toll on our team has been substantial,” they said.

Some members of 360 PACE were linked to 360 Health, which operated county “super sites” for COVID testing during the pandemic under the name 360 Clinic.

CalOptima’s concern over 360 PACE was sparked by a whistleblower lawsuit filed in May 2024 that alleged 360 Clinic schemed to illegally solicit kickbacks from doctors and defraud federal health programs. The suit alleges 360 Clinic double-billed government agencies for the tests and plotted to get kickbacks from physicians for referrals.

The litigation by former employee Laura Garcia also accuses 360 Clinic officials of conspiring to send patients to medical services either owned by the firm or by relatives of company officials, a violation of federal and state regulations against physician self-referrals.

In Wednesday’s email, 360 PACE said a comprehensive, independent audit of 360 Clinic, ordered by legal counsel and led by a former FBI special agent, was conducted over the past three months and found full compliance across all areas.”

However, 360 PACE did not respond to a request for a copy of the audit and the name of the auditor.

CalOptima had no comment Wednesday on 360 PACE’s withdrawal.

Orange County Register

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360 PACE drops plans for a comprehensive senior health center in Westminster

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