Sanjay Sharma Fined for Deceptive Hospital Billing
The Illinois Attorney General penalized Sharma for fraudulent billing practices involving a closed Galesburg hospital.
Updated on Oct. 1, 2026 in Healthcare
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Sanjay Sharma has paid a $15,000 fine to the Illinois Attorney General after his company sent fraudulent medical bills to 1,734 former patients. The bills were issued by the Galesburg Hospital Corporation following the closure of Galesburg Cottage Hospital.
Why it matters
This enforcement action addresses failures in medical record management and patient protections following the closure of a healthcare facility. It underscores the responsibility of hospital owners to ensure that third-party contractors adhere to state billing standards.
Five patients received a total of $4,612 in restitution for paid fraudulent bills, while 6,600 debtors were barred from further collection activity. The hospital corporation previously failed to meet a two-business-day mandate for returning inquiry calls.
The players
Sanjay Sharma
He is the business owner who purchased Galesburg Cottage Hospital through his firm, SBJ Group.
Illinois Attorney General
This state office is responsible for enforcing consumer protection laws and investigating deceptive business practices.
Galesburg Hospital Corporation
This corporate entity was responsible for the management of the hospital and its subsequent billing operations.
Infrahealth
This is the third-party contractor involved in the billing operations that failed to receive proper communication from the hospital.
The details
The billing scheme utilized third-party claims processing records to generate invoices that featured a return address in Pontiac, Michigan. The Galesburg Hospital Corporation, which was acquired by Sharma through SBJ Group, failed to maintain its own accurate billing records or communicate obligations to its contractor, Infrahealth.
Timeline
Sanjay Sharma purchased the hospital through SBJ Group in 2020.
Galesburg Cottage Hospital officially closed its operations on January 8, 2022.
The fraudulent billing statements were sent to patients in May 2023.
Some patient bills featured an invoice date of May 1, 2023.
The settlement and fine were officially announced on October 1, 2026.
Market Landscape
This enforcement action follows the regulatory patterns set by the Illinois Consumer Fraud and Deceptive Business Practices Act to protect residents from predatory medical billing. It highlights the increased scrutiny on hospital entities that fail to maintain transparency during and after facility closures.
Patients who were affected by these bills have had their specific debts addressed through the restitution process. Local residents are protected from future collection attempts on these accounts as 6,600 debtors have been officially barred from such activity.
The takeaway
Patients should always verify the legitimacy of medical invoices that appear after a hospital has permanently closed its doors. If an invoice seems suspicious, contacting the state attorney general's office is an effective way to report potential billing fraud.
Further reading
For more information on patient protections, visit the Healthcare section.
Source note: This article includes information reported by Tspr.
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