Allstate has sued Florida Orthopedics and Neurosurgery, which operates as University Orthopedic Care, alleging personal-injury protection fraud claims, according to court documents filed May 15 in the U.S. District Court for the Middle District of Florida.
Allstate’s lawsuit alleges that the Palm Springs, Fla.-based practice had a built-in kickback structure that sought to multiply facility fees. When a patient was sent to an ASC, the practice allegedly billed Allstate a large facility fee and then sold the right to collect the fee to a related company for a fraction of the cost.
One instance the lawsuit cited was a case wherein an ASC billed $16,500 for a radiofrequency ablation and sold the right to collect to ASC Lender for $1,500. ASC Lender is partly owned by someone who has a University Orthopedic ASC, the lawsuit said.
The insurer also alleged that the practice paid its physicians to bring cases to the ASC, along with other concerns related to staff licensing and documentation.
Allstate seeks treble damages under federal anti-racketeering laws, attorney’s fees, an injunction and a declaration that it owes nothing on the disputed claims.
University Orthopedic Care didn’t immediately respond to a May 20 request for comment from Becker’s. This article will be updated if they do.
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