Doctors busted in $30m surgery scam

Insurance scheme involved hundreds of patients nationwide Updated: 1:12 p.m. ET May 17, 2007 SANTA ANA, Calif. - Three doctors were charged with billing insurers for $30 million of unnecessary surgery performed on hundreds of patients recruited from around the country. Authorities said the patients received money or low-cost cosmetic procedures for participating in the “rent-a-patient” scam at Unity Outpatient Surgery Center. More than $5 million of the insurance claims were paid, authorities said. Arrested Wednesday were Dr. Michael Chan, an obstetrician; Dr. William Hampton, a surgeon; and Dr. Mario Z. Rosenberg, a gastroenterologist. Each was charged with 47 felony counts including conspiracy after billing 19 insurance companies for what authorities said were unnecessary colonoscopies and surgeries on 940 patients. Bail ranged from $1 million to $2.3 million. Each doctor could face nearly 50 years in prison. The California Medical Board was also pursuing suspension of their licenses. Fourteen other people — five administrators and nine recruiters — have been charged as part of a four-year investigation. “Doctors need to know if they commit insurance fraud, they may be trading in their scrubs for prison jumpsuits,” District Attorney Tony Rackauckas said.

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