Two more physicians are potentially going to jail related to laboratory kickbacks and bribes. Internist Dr. Charles Goldberg became the 12th physician to plead guilty to accepting bribes from Biodiagnostic Laboratory Services (BLS) in exchange for test referrals. In a separate scheme, Dr. Linda Rosenberg pled guilty to accepting kickbacks from a Chicago-area laboratory.
Dr. Charles Goldberg
I first wrote about the BLS bribery case back in April 2013 when it came to light. Basically, BLS paid physicians thousands of dollars a month to refer testing to BLS “under the guise of lease, service, and/or consulting agreements.”
One physician, Dr. Frank Santangelo, pled guilty in July 2013 to receiving $1.8 million in bribes in the form of $40,000-$50,000 monthly payments. He was supposed to have been sentenced on October 24, 2013, but I can find no record of his sentence, so I presume sentencing has been delayed.
The entire scheme is said to have resulted in approximately $200 million in revenue for BLS over a 6 year period, $33 million of which went to BLS’ then 39 year old owner David Nicoll.
Disappointingly, only $7 million of the $200 million has been recovered so far.
In order to secure Dr. Goldberg’s test referrals, BLS “leased” the waiting room, bathroom, and one examination room in his office for $1,800 a month.