Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Tuesday October 5
Allstate Prevails in Fraud Lawsuit against Largest Texas Chiropractic Clinic
A Dallas jury has ruled that Texas's largest chiropractic chain, Accident & Injury Pain Center, Inc., conspired in a statewide scheme designed to defraud Allstate Insurance Company and Encompass Insurance, a subsidiary of Allstate. Accident & Injury Pain Center, Inc., its related entities and various chiropractors, osteopaths and medical doctors were found to have conspired to commit common law fraud by over-treatment and unnecessary referrals. The jury ordered them to pay $2.8 million in actual damages and $3 million in punitive damages."At Allstate, we're taking a stand to fight insurance fraud and get the defrauders, no matter where they're hiding," said Gary Briggs, Texas Field Vice President. "Our commitment is to deliver competitive insurance rates to our policyholders, and we can help do that by exposing insurance fraud and putting fraudulent enterprises out of business."
Allstate and Encompass had alleged that the vast majority of X-rays for auto accident patients of Accident & Injury Pain Center were referred to "Lone Star Radiology," located within Accident & Injury Pain Center's corporate office in Dallas. Patients were routinely referred for MRIs on their first visit to one of four facilities that were owned by Robert Smith, the owner of Accident & Injury Pain Center.
The medical doctors to whom patients were referred conducted the 'second opinion examinations' at Accident & Injury Pain Centers. They had an arrangement with Receivable Finance Company to sell or kick back to Receivable Finance their medical bills for the examinations for a small percentage or flat fee. Receivable Finance Company is also owned by Robert Smith and is located within the Accident & Injury Pain Center corporate office. Further, Allstate and Encompass had developed evidence that the wife of one of the medical doctor defendants was receiving up to $10,000 a month for "marketing services" from a pharmacy where the vast majority of the Accident & Injury patients were receiving prescriptions.
This suit and similar ones filed across the country are the result of Allstate's nationwide commitment to protect its customers and shareholders from the added expense directly linked to insurance fraud. According to the National Insurance Crime Bureau, insurance fraud costs U.S. consumers an estimated $20 billion annually.
©2004 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?