Michigan Neurosurgeon Admits Role in $11M Healthcare Fraud Scheme

A Michigan neurosurgeon accused of performing unnecessary spinal surgeries has pleaded guilty in federal court to healthcare fraud in two separate criminal cases.

Aria Sabit, M.D., admitted on May 22 before U.S. District Judge Paul Borman that his actions caused physical pain to his patients in both Michigan and California between 2010 and 2012. In his schemes, Sabit fraudulently billed and received $11 million from Medicare, Medicaid and private insurance companies, officials said.

“Disregarding his Hippocratic oath to do no harm, Dr. Sabit enriched himself by performing unnecessary, invasive spinal surgeries and implanting costly and unnecessary medical devices, all at the expense of his patients’ health and welfare,” Assistant Attorney General Caldwell said in a statement following the hearing. “Doctors who sell their medical judgment and ethics for personal profit endanger the lives and safety of vulnerable patients who count on their advice to make life-altering decisions.”

Sabit initially pleaded not guilty after he was indicted in November. After some changes, defense attorney Timothy Lessing said his client felt “comfortable” with the new charges. He pleaded guilty to one count of health care fraud in California, four counts of health care fraud in Michigan and one count of distribution of a controlled substance.

“He’s taking responsibility for what he’s done,” Lessing told The Detroit News after the hearing. “… He’s pleaded guilty, so clearly there is remorse.”

During court Friday, Sabit, 39, also forfeited his interest in proceeds from the sale of his Bloomfield Hills home as well as four bank accounts.

Sabit said in court that while working as a neurosurgeon in California in 2010 he conspired with Apex Medical Technologies LLC to receive illegal kickbacks for using their spinal implant devices in surgeries that patients either didn’t need, or in surgeries that were more complex than needed. According to court documents, Sabit was a licensed neurosurgeon who owned and operated the Michigan Brain and Spine Physicians Group with various locations in the Eastern District of Michigan, including Southfield, Clinton Township, and Dearborn, which opened in April 2011.

Sabit said he operated on patients and dictated in his operative reports—which he knew would later be used to support his fraudulent insurance claims—that he had performed spinal fusion with instrumentation, though he never did perform the procedures. The invasive surgery caused serious bodily injury to the patients, according to the U.S. government. Sabit also admitted that his operative reports and treatment records contained false statements about the procedures performed, and the instrumentation used in the procedures. In addition, Sabit said on occasion, he would implant cortical bone dowels and falsely dictate in his operative reports that he had implanted instrumentation. Sabit then fraudulently billed public and private healthcare programs for instrumentation, when in fact the implants were tissue. Sabit admitted he failed to render services in relation to lumbar and thoracic fusion surgeries, including in certain instances, billing for implants that were not provided.

In Michigan, he said in four instances he billed Medicaid and private insurance companies for surgeries he did not perform.

The indictment says patients didn’t know about their fraudulent back surgeries until they had another doctor examine them.

Tonocca Scott, 40, of Ypsilanti claims he was a patient. Still out of work and reluctant to have more surgery, Scott told the News the pain in his back feels like a “heart attack.” His malpractice lawsuit against Sabit is pending.

Sabit returns to court for sentencing Sept. 15. He faces up to 20 years in prison.

“This case of health care fraud is particularly egregious because Dr. Sabit caused serious bodily injury to his patients by acting out of his own greed instead of the best interests of his patients,” said U.S. Attorney Barbara L. McQuade.  “Not only did he steal $11 million in insurance proceeds, but he also betrayed his trust to patients by lying to them about the procedures that were medically necessary and that were actually performed.”