It is not a felony, it is a civil breach of contract and you can be sued by the surgery center for the money and it cannot be extinguished in bankruptcy because it is a form of fraud by keeping money you were given to repay the insurance company. It is rare they would charge this as theft
in AZ, but if they did it would be a felony because of the amounts and it could be punishable by up to 10 years in prison, but charges in this type of case is rare. The usual action is getting a judgment against you by the creditor in CA and they will garnish your wages and seize your bank accounts and could even seek to seize your property and real estate for the satisfaction of the debt.
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