Interesting article on paying docs to perform surgerys in “surgical centers”

From the Tribune:,0,4349554.story

It’s interesting to note the prosecution is over this businessman is directing certain traffic to his “surgical centers” by bribing doctors.  In other words, Nayak paid doctors $200 to $300 to use his surgical centers, then presumably the insurance companies paid much more to the surgical centers to “do medical business there”.

Apparently moving and directing medical business for profit is not really prohibited by the law directly.  The feds are prosecuting him under IRS tax laws for not filing the paperwork to report the bribes to the IRS, and then there is “honest services”– a very controversial part of Federal law that says businesses have to provide “honest services” for payment.  The feds allege that these payments were not disclosed to patients, even though there apparently is no real duty under the law to do so.  This is interesting because how many of us have gone to the doc’s offices, gotten a bill later and found all sorts of names on that bill we never even heard of besides the clinic’s and doctor’s name.  Lab services,PT, billing–you name it, bills are filled with names never heard of before.  And we always see amounts that are clearly suspect–such as massive amounts for routine blood tests that seemed to cost about half that years earlier.

The guy is linked to Blago and Rev. Jackson Jr. via campaign raising efforts.  No surprise.

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