The California Medical Board has accepted the surrender of former hospital executive Yorai “Benny” Benzeevi’s physician license, officially ending his ability to practice medicine in the state following his conviction in a long-running Tulare County public corruption case.
Under a decision adopted by the board, Benzeevi surrendered his physician and surgeon certificate as a form of professional discipline. The order takes effect at 5 p.m. on Wednesday, May 6 and permanently removes his rights and privileges as a doctor in California, according to board documents.
Benzeevi, 62, was the former CEO of Healthcare Conglomerate Associates, the private company that managed Tulare Regional Medical Center and Southern Inyo Hospital before both entities collapsed financially.
The medical board action follows Benzeevi’s 2024 sentencing in Tulare County Superior Court, where a judge ordered him to pay $2.4 million in restitution but spared him any additional jail time.
“After years of fighting to be heard, the surrender of his license without contest speaks for itself,” said Dr. Patricia Drilling Phelps, a representative of Citizens for Hospital Accountability, a Tulare community group critical of Benzeevi and the HCCA. “The community was right, and now the record reflects that.”
Tulare County District Attorney Tim Ward declined to comment on the news.
What the California Medical Board’s order means for Benzeevi
Under a stipulated agreement approved by the board, Benzeevi voluntarily surrendered his medical license rather than contest disciplinary charges stemming from his criminal case.
The order states that Benzeevi “shall lose all rights and privileges as a Physician and Surgeon in California” as of the effective date. The surrender is recorded as formal discipline and will remain part of his permanent license history.
The board also ordered Benzeevi to turn in his pocket license and any wall certificate and to pay $49,928.25 in investigation and enforcement costs if he ever seeks reinstatement.
If Benzeevi were to apply to regain a medical license in California in the future, regulators would treat all allegations in the disciplinary case as true and admitted, thereby placing a high bar for any return to medical practice.
How the Tulare hospital collapse led to Benzeevi’s conviction
The medical board action stems directly from Benzeevi’s criminal conviction related to his leadership of Tulare Regional Medical Center from 2013 to 2017.
Prosecutors said Benzeevi improperly used his dual role as a hospital executive and private contractor to steer public contracts, loans, and hospital resources to benefit his company financially.
Those actions preceded a period marked by unpaid employees, a failed bond measure, an unfinished hospital tower, recalled board members, patient safety concerns, and the closure of Tulare Regional. Adventist Health later took over hospital operations in 2018.
Benzeevi previously pleaded no contest to six felony counts and two misdemeanors, including multiple conflict-of-interest violations, campaign finance reporting failures, and using his official position for personal gain.
At sentencing, prosecutors urged the court to impose jail time, citing severe harm to the community and patients. Victim impact statements described critical supply shortages, unsafe conditions and preventable deaths during Benzeevi’s tenure, blaming a culture that put profits ahead of patient care.
Why the Benzeevi case matters for California hospital accountability
Medical board discipline is one of the strongest tools California has to prevent physicians convicted of serious misconduct from continuing to practice.
By accepting Benzeevi’s license surrender as discipline, the board ensured he can no longer work as a doctor anywhere in the state, regardless of the outcome of his criminal probation.
The decision also closes a major chapter in one of Tulare County’s most expensive and politically fraught corruption cases, which prosecutors have said consumed millions of dollars and thousands of staff hours over more than six years of investigation and litigation.
(This story was updated with a video.)
This article originally appeared on Visalia Times-Delta: California Medical Board takes ex-HCCA CEO’s medical license
Reporting by James Ward, USA TODAY NETWORK / Visalia Times-Delta
USA TODAY Network via Reuters Connect
