On April 9th, 2013 it was reported by TSB's favorite Spine Journalist, John Carreyou that Federal Agents are looking into fraud allegations at companies owned by Michael D. Drobot. The obvious facility that comes to mind is Pacific Hospital of Long Beach, a 184 bed facility that has had a reputation well known within the SoCal spine community. Though the affidavit to search and seize were sealed, most of you that have sold in this area can embellish on your own experiences with Pacific. In addition to Pacific, Federal Agents also served search warrants on a company named Industrial Pharmacy Management, LLC, a Newport based company that dispenses medications to patients in doctors offices. TSB must admit, when it comes to creative business models, we are sure that the Golden Gate State outshine the Volunteer State, Texas, Alabama, Florida or that bastion of culture and panache, Mississippi.
Entertaining? Well, as TSB likes to say, "the show is just beginning." A spokesperson at the hospital immediately responded to these "misunderstandings," and the parties involved intend on working with authorities to resolve these issues. The reaction in the WSJ by a few of its readers is indicative of the negative climate that the public exhibits when it comes to government intervention regarding allegations of healthcare fraud. The general public should be outraged. With the exception of those surgeons or businessmen wives whom will rail about how hard their husbands work to support a lavish lifestyle at the cost of the American Healthcare System and the public, we should demand that business models that increase the cost of delivering healthcare in an already out-of-control healthcare environment, that are bilking Medicare out of billions of dollars be prosecuted to the fullest extent of the law.
TSB is willing to debate what constitutes a "self-inducement"with anyone involved in a POD, POC, Physician Owned Hospital. But who wants to have a debate? With the U.S. Postal Service and Department of Defense, and California Labor and Insurance Departments involved, you know what TSB says, "where there's smoke there's fire."
"The heat is on, on the street
Inside your head, on every beat
And the beat's so loud, deep inside
The pressure's high, to stay alive
Cause the heat is on."