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California radiologists sued for workers' compensation fraud

Workers' compensation fraud can seem like an easy and anonymous way to bring in extra money to a business. However, this high-risk practice can have devastating financial consequences for a business owner when caught and confronted with legal action. Recently, two radiologists and their companies were sued for workers' compensation fraud and illegal billing practices.

A group of insurance companies brought the lawsuit against the owners of two California radiology companies. The lawsuit seeks $3 million in purported workers' compensation fraud damages. Records show that the insurance companies believe the radiology owners provided fraudulent documents in order to collect benefits for treatment and services they did not perform or provide.

The workers' compensation fraud was purportedly exercised in over 200 cases where MRI and CT scans were documented and billed to the insurance companies, though never actually completed. The lawsuit further claims that an owner of one of the radiology clinics was not licensed as mandated by California law to practice. The insurance companies seek compensation for the financial loss from the workers' compensation fraud, and they wish for the radiological companies to discontinue their inappropriate billing.

Reports indicate that the insurance company heading up the lawsuit staffs a Special Investigation Unit that received specialty training in detecting fraud and protecting clients. A business owner who has been involved in workers' compensation fraud may feel a myriad of emotion when an operation is discovered and stopped. Legal assistance may be sought out by a person who wishes to protect the financial future of their business and personal assets should they be in a similar situation.

Source:, Farmers Files $3M Lawsuit Against Radiology Companies for Alleged False Billing, No author, Dec. 24, 2013

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