United States v. John Natale

719 F.3d 719, 2013 WL 2506660, 2013 U.S. App. LEXIS 11765
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 11, 2013
Docket12-3231
StatusPublished
Cited by70 cases

This text of 719 F.3d 719 (United States v. John Natale) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. John Natale, 719 F.3d 719, 2013 WL 2506660, 2013 U.S. App. LEXIS 11765 (7th Cir. 2013).

Opinion

FLAUM, Circuit Judge.

When another doctor reviewed the post-surgical CT scan from one of Dr. John Natale’s patients, something did not seem right. Natale had previously repaired the patient’s aortic aneurysm, and the images from the CT scan did not match the procedure Natale described in his operative reports. An investigation culminated in Natale’s indictment for health care fraud related to his Medicare billing, mail fraud for his use of the mails in receiving the Medicare reimbursement checks, and false statements related to health care for the inaccuracies in his operative reports and other medical notes. The jury acquitted Natale on the fraud counts but convicted him of making false statements in violation of 18 U.S.C. § 1035. When charging the jury on the false statement counts, the trial court used instructions that seemingly permitted conviction for false statements completely unrelated to Medicare reimbursement. Natale now challenges that instruction along with several of the district court’s evidentiary rulings. We agree that the district court’s instruction on the false statements charges swept too broadly and allowed conviction for conduct not covered by the statutory text. We now clarify the meaning of § 1035 and identify the proof required for conviction. Because the erroneous instruction was harmless in Natale’s case, however, and because we see no error in the district court’s evidentiary rulings, we affirm Na-tale’s conviction.

I. Background

A. Factual Background

Natale is a vascular surgeon who performed surgeries out of Northwest Community Hospital in Arlington Heights, Illinois. He specialized in the treatment of aortic

*723 [[Image here]]

aneurysms, a condition involving weakened vascular walls in the aorta, the main artery exiting the heart. Treatment for aneurysms generally involves surgery, during which the surgeon cuts out the weakened arterial tissue and replaces it with a synthetic graft.

Treatment of aortic aneurysms is especially complex. The aorta is the main conduit delivering oxygenated blood from the heart to other body parts. It thus consists of a wide tube that leaves the heart and extends down, the center of a person’s torso. See Figure 1. As such, it is much like an interstate highway — large, wide, and designed to deliver high volumes of blood (which would be like cars on the highway) quickly to the destination body parts. And just as an interstate highway has exits that divert traffic to smaller local roads, arteries branch off from the aorta to deliver blood to the various organ systems throughout the body. For example, the hepatic artery carries blood to the liver; the gastric artery delivers blood to the stomach; and the renal arteries ensure perfusion of the kidneys. See Figure 2. The aorta ultimately

*724 [[Image here]]

forks into two branches, becoming the left and right iliac arteries. The iliac arteries in turn become the femoral arteries, which carry blood to the legs and lower extremities.

Surgeons use two different types of synthetic grafts to repair the weakened aortic walls. A tube graft performs exactly as its name implies. A tube replaces the weakened arterial wall (or is used to create a bypass around the weakened artery). See Figures 3B and 4B. The tube graft attaches to the aorta itself, before the vessel splits into the iliac arteries. In contrast, a bifurcation graft splits into two branches at its lower end, with the two branches attaching to the iliac arteries, not the aorta. As a result, the bifurcation graft itself has the shape of an upside-down “Y”. See Figures 3A and 4A.

While all aortic aneurysms present complications, aortic aneurysms above (sup-rarenal aneurysms) or near (Juxtarenal aneurysms) the renal arteries prove especially difficult. Treating these aneurysms requires the surgeon to clamp the renal arteries, sever them from the aorta, replace the juxtarenal segment of the aorta with a graft, and reattach the renal arteries to the graft. As a result, post-operative renal arteries attach to and branch off from the synthetic graft, not the natural aorta.

Medicare requires doctors to submit bills using a five-digit “CPT” code, which determines the level of Medicare reimbursement. Because aneurysms involving the renal arteries require a more complex procedure, Medicare reimburses such surgeries at higher rates than simpler repairs. In this case, the indictment accused Natale of performing the simpler repair surgery while submitting the CPT codes and receiving reimbursement for treatment of the more complex suprarenal aortic aneurysm. For the surgeries described in the indictment, use of these billing codes netted Natale about $3,700 more, in total, than the codes for less complex aneurysms allowed.

*725 More specifically, Natale faced two counts of health care fraud, see 18 U.S.C. § 1347, one count of mail fraud, see id. § 1341, and two counts of making false statements relating to health care matters, see id. § 1035. At the root of all five counts sat alleged falsities contained in the operative reports for several of Natale’s patients. According to the government, these statements gave the impression that Natale had performed the more complex procedure involving the renal arteries. Among other statements, for example, Na-tale dictated that he “reimplanted” or “implanted” renal arteries of several patients. 1 His operative notes also stated that a “button of the right renal artery tissue was then cut out and sewn to a portion of the graft with 5-0 Prolene.” Thus, he described sewing the renal arteries directly into the synthetic graft (the 5-0 Prolene) as if he had repaired an aneurysm involving the renal arteries. In addition to these statements (and others) suggesting involvement of the renal arteries, Natale’s operative reports and other notes suggested use of bifurcation grafts rather than tube grafts. For example, one note explains that he “extended the limbs of the bifurcation graft down to the external iliac artery bulge.” In reality, the government charged, Natale had performed a simple repair below the renal arteries using only a tube graft. These allegedly false statements in the operative reports provided both the misrepresentations necessary for the scheme to defraud and the falsities necessary for the false statement counts.

B. Procedural History

At trial, the government offered the expert testimony of Dr. George Anton, a surgeon with Hillcrest Hospital in Cleveland. Anton testified that Natale supported his use of the higher-paying billing codes through the statements in the operative reports. Operative reports generally provide a summary of the surgery — describing what procedure was done, what the doctor noticed, what complications, if any, occurred, etc. Northwest Community policy required completion of and submission of operative reports following all surgeries.

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Cite This Page — Counsel Stack

Bluebook (online)
719 F.3d 719, 2013 WL 2506660, 2013 U.S. App. LEXIS 11765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-john-natale-ca7-2013.