Are Flea's Causing My Cat to Scab and Lose Hair? PLEASE HELP!

Cat has scaly patches and baldness on his back where his shoulder blades come together and also where his tail meets his back.  We have a big flea problem.  Could this be the work of the fleas?
  
He is scratching every scab making it really bad.  It's along his entire spine.  I've tried giving him weekly baths with flea shampoo, a flea collar Nov 15th and using a flea gel which said lasts for a month.  

I would prefer a wholistic way of healing him but I'm not sure what step to take next with him.

Yes, the fleas could definitely be causing your cat's hairloss. Sometimes they get so itchy that they scratch their fur off and other times there is a flea allergy in the picture. It could also be other things like mange or ringworm or maybe a food allergy but since you have fleas I'd deal with that first and see if it gets better.

Unfortunately flea shampoos, flea collars and OTC gels don't work. They may kill the adult fleas but does nothing for the eggs and larva that is on your cat and all over your house. The fleas will come back over and over until you use an effective product to treat all the pets in your household.

I would treat all the pets in your household with Frontline Plus for three months. That's about the time it takes for the fleas in the environment to die out. You can buy it fairly cheaply on Ebay. If you have several cats you can get kits on Ebay that you can use for multiple cats (it's really a dog dose that you divide up into smaller doses for cats). This is the cheapest way to do it if you have several cats. If you have dogs you have to treat them too.

With Frontline your cat should start improving within a week or two. You have to give three doses still since the fleas will come back if you don't. Unfortunately there are no holistic or natural products that work when you have a bad flea infestation and with your cat's severe reaction I wouldn't gamble.

Do you have any other pets?

Did the patches start after using the collar? Flea collars have a well deserved horrible reputation. Go with the advice above and use frontline.