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The Honolulu Advertiser

Updated at 12:12 p.m., Tuesday, May 8, 2007

Doctor's practice pleads guilty to $178,181 fraud

By KEN KOBAYASHI
Advertiser Courts Writer

Prominent Honolulu dermatologist Norman Goldstein pleaded guilty this morning on behalf of his medical practice for overbilling the Hawai'i Medical Services Association about $178,181.

Goldstein wasn't charged in the case, but he pleaded guilty on behalf of Norman Goldstein, M.D., Inc., for billing HMSA for acne surgery when his practice provided cryotherapy involving liquid nitrogen for the acne treatment about 20,000 times from 1997 to 2000.

During that time, the reimbursement for acne surgery was $43.60 while the cryotherapy was $34.30.

As part of a plea agreement, the corporation must pay a fine of $356,363, twice the amount of the overbilling.

Goldstein is president of the corporation.

Brook Hart, the corporation's lawyer, said his client has already paid HMSA $178,181.

U.S. District Judge Michael Seabright scheduled the sentencing for Sept. 4.