Seeking to recover $4.5 million from medical providers in a scheme to allegedly bill insurance companies for procedures that were medically unnecessary and in many cases inappropriate, Allstate Insurance Company filed counterclaims and Complaints against the perpetrators. Allstate filed counterclaims and a third party Complaint alleging that two New York medical professional corporations – Cambridge Medical P.C. and Pine Hollow Medical, P.C. – were fraudulently incorporated through a scheme using the names of licensed medical physicians, and that a lay-owner, who was not a physician, secretly owned and controlled the medical professional corporations. Cambridge filed a civil lawsuit seeking to recover billing from Allstate. The insurer responded with its counterclaims and a third party Complaint.
Allstate alleges in its counterclaims and third party Complaint that these corporations fraudulently billed Allstate Insurance Company. The claims were filed following an investigation by Allstate’s Special Investigative Unit and seek reimbursement for personal injury protection benefits Allstate paid on behalf of its customers during time frames specified in the counterclaims and third party complaint. Since 2003, Allstate has filed 32 fraud lawsuits in New York State, seeking more than $175 million in damages.
As I have mentioned on numerous occasions, corporate entities such as Allstate appear to really “like” the court system when they consider themselves to be victims. But when they are the wrongdoers, the corporate bosses have a totally different mind set.
Source: Claims Journal
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