LOS ANGELES
Brian Carrico, 68, of Redondo Beach, was sentenced by U.S. District Judge Josephine L. Staton, who also ordered him to pay a $25,000 fine. Judge Staton also sentenced Carrico’s companies to one year of probation and fined them each $250,000. Surgeons saw patients at Performance Medical’s offices. Carrico also owned One Accord Management, which provided billing, collection and other support services for Performance Medical. His criminal partner, William Parker, 68, of Redondo Beach, owned Union Choice Therapy Network, which had a contract with Pacific Hospital and paid One Accord money from that contract.
From June 2004 to December 2013, Carrico and Parker participated in a kickback scheme in which Pacific Hospital overpaid for the value of services performed under its Union Choice contract to induce Carrico and Parker to refer patients to Pacific Hospital for surgeries and other treatment. The owner of Pacific Hospital, Michael D. Drobot, conspired 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. During its final five years, the scheme resulted in the submission of more than $500 million in medical bills for spine surgeries involving kickbacks. To date, 22 defendants have been convicted for participating in the kickback scheme. In April 2013, law enforcement searched Pacific Hospital.
Specifically, Carrico and Parker offered a quid pro quo in which the referral of patients to the hospital was contingent on that hospital entering into a management services agreement with Union Choice.
While not written
“[Carrico], as the licensed medical professional, had control and influence over the location where patients had spinal surgeries,” prosecutors wrote in a sentencing memorandum. “Patients are not commodities that can be traded for kickbacks.” The United States Postal Service Office of Inspector General, the FBI, IRS Criminal Investigation, and the California Department of Insurance investigated this matter. Assistant United States Attorneys Joseph T. McNally and Billy Joe McLain of the Violent and Organized Crime Section prosecuted this case.
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