Business Ethics Gone Bad – CANNON FAMILY MEDICINE, INC. Pleads Guilty to Health Care Fraud

A Kannapolis physician assistant Faces Up to Ten Years in federal prison – what for?  Is the need to achieve wealth or increase material possessions so great that it is worth one’s freedom?  That is the very real question that I had to face when some 13 years ago I took my first steps into federal prison.  Now another will take those steps soon.

CHRISTOPHER J. CAGGIANO, president of CANNON FAMILY MEDICINE, INC.- Kannapolis, North Carolina – plead guilty to four counts of health care fraud.

In July 2006, the N.C. Medical Board suspended Caggiano’s license to work as a physician assistant for two years. But the suspension was to be stayed on Jan. 1, 2007, and Caggiano was to remain on probation for the duration of the suspension.  Caggiano was accused of ordering unnecessary tests for some patients and billing patients’ insurance companies for tests not performed.  At the time, Caggiano said the allegations were untrue and blamed any misunderstandings on disgruntled former employees. The complaint investigated by the medical board also alleged that the physician assistant violated professional standards by allowing patients to refer to him as “Dr. Caggiano.”

The charges against CANNON FAMILY MEDICINE, INC. allege that the practice submitted false claims to private health insurance companies as well as false claims to Medicare, Medicaid, and federal employee health programs.

Each health care fraud count carries a maximum possible penalty of ten (10) years imprisonment, a fine of up to $250,000, and up to three years supervised release. The medical practice and CAGGIANO, a physician assistant, will be sentenced on February 11, 2009.

QUESTION:  What motivated Caggiano’s behavior?  Do you suppose that Caggiano, who will be sentenced to federal prison, will learn and use his prison experience to help others?  As a business ethics and white collar crime speaker, I know that prison does not have to be a dead end.  Every choice has a consequence this is just another example.

Your comments are welcome!

9 Responses to Business Ethics Gone Bad – CANNON FAMILY MEDICINE, INC. Pleads Guilty to Health Care Fraud

  1. Dear Chuck;
    I too was sentenced to a federal prison for Medicare fraud in 2001 due to incompetent billing practices. I, being the owner, took full responsibility and for 34 counts I only received 5 months in a federal prison camp. The judge was aware of the circumstances of the case and advised me after I took a plea that I should have went to a jury trial. I was never indicted and had complete documentation ordering my ambulance service to transport radiation patients to the hospital for treatment. Anyways I did my time and due to gross stigmatization from society upon release it was very difficult to find a job. So I created and designed a reality based prison board game. Parole-Board “The Ultimate Game of Injustice.” This would be my sounding board for illuminating the deficiencies of the criminal justice system while enlightening one on the harsh realities of the correctional system, doing so in a humorous way. I just released it on the internet check it out

  2. Sylvia says:

    I do not believe that prison will make this man different. He has broken the laws for his own gain for a long time and, in fact, blames others for his downfall. He does not believe that he has done anything wrong and I do not believe that he can change.

  3. Kathleen says:

    This man was greedy and played “God”. I feel he needs to receive the full penalty. He is one of the reasons healh care costs have risen so dramatically. Is material wealth that important that one needs to screw the public?

  4. Kathleen says:

    Any news on what kind of sentence this guy got???

  5. anonymous says:

    sentencing hearing was postponed until later this year

  6. John says:

    Will be interesting to see the final outcome.

  7. Kathleen says:

    So they put off sentencing, huh? Geesh. Watch this jerk get off! He deserves to be hung out to dry! I have a friend who “dealt” with him and said he thought he was superior to his “lowly” patients. Do you think we’ll ever find out what happens to him?

  8. C. F. says:

    I worked for this guy, and he is a “smooth talker” and very much a fraud. Sentencing is 6/5/09. I hope he gets what he deserves, and you are correct, thanks to him and many others, are health insurance costs are through the roof!

  9. Anne says:

    Caggiano was sentenced earlier this month to 20 months and restitution of nearly $400,000. plus fines. I agree that he is a smooth talker who blames everything that happens to him on everyone else.he si a narcissistic sociopth and i doubt he will ever change.

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