Dr. Bernadett's case arose out of him continuing the kickback arrangements in existence when he bought Pacific Hospital. He was ordered him to pay a $60,000 fine on top of $1 million he has already forfeited to the United States.
Dr. Bernadett, a board-certified anesthesiologist and pain management physician who
retired his license last year, pleaded guilty last year to a one-count criminal
information charging him with misprision of a felony.
In 2005, Dr. Bernadett purchased Pacific Hospital from Michael D. Drobot. Under the terms of the sale, Mr. Drobot guaranteed to Dr. Bernadett that 75 spinal surgeries per month would be performed at Pacific Hospital or else Mr. Drobot’s payout would be reduced by $25,000 for each surgery below that requirement.
Pacific Hospital specialized in surgeries, especially spinal and orthopedic procedures. Pacific
Hospital’s owner, Michael D. Drobot, who is already serving a sentence for conspiring with doctors, chiropractors and
marketers to pay kickbacks in return for the referral of thousands of patients
to Pacific Hospital for spinal surgeries and other medical services paid for
primarily through the California workers’ compensation system.
Dr. Bernadett, who became directly involved with the hospital’s day-to-day
operations by late 2007, later learned that Mr. Drobot was making illegal kickback
payments to physicians in order to cause those physicians to steer spinal
surgeries to Pacific Hospital. By January 2008, Mr. Bernadett had learned that Mr. Drobot concealed the illegal kickback payments by entering into various types
of sham contracts – such as management agreements, collection agreements and
option agreements to disguise the kickbacks.
The government alleged that instead of putting a halt to Drobot’s kickback scheme, Dr. Bernadett authorized the
continued use of these sham contracts to incentivize surgical referrals to
his hospital. Between January 2008 and October 2010 (when Dr. Bernadett sold his
interest in Pacific Hospital back to Drobot), Pacific Hospital and related
entities made more than $30 million in illicit payments to kickback recipients
and performed approximately 1,400 kickback-induced spinal fusion surgeries.
Out of Pacific Hospital, 24 defendants have been charged in connection with the scheme, and 15
of them have been convicted, including Drobot and his son.
Posted by Tracy Green, Esq.
Posted by Tracy Green, Esq.
