Ex-Hospital CFO, Docs Guilty In $580M Referral Billing Scheme

By Dani Kass (November 24, 2015, 5:47 PM EST) -- Four people, including the former chief financial officer for a Long Beach, California, hospital at the center of a health care fraud and kickback scheme, have reached plea agreements admitting to being involved in the nearly $600 million billing scheme over spinal surgeries, federal prosecutors announced Tuesday.

Former Pacific Hospital CFO James L. Canedo, two orthopedic surgeons and a chiropractor have all pled guilty or agreed to plead guilty in the scheme, in which doctors were paid tens of thousands of dollars to refer their patients to the hospital even if it wasn't the closest qualified hospital, according to prosecutors. The...

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