String of New York Healthcare Providers Sued for Alleged Fraud

Two lawsuits have been filed against various healthcare providers in New York who allegedly falsely claimed physician-ownership status of their medical practices in order to receive payments under the no-fault law of New York, according to an Allstate news release.

In the state of New York, the no-fault law states any person injured in a motor vehicle accident is automatically covered by the Comprehensive Motor Vehicle Insurance Reparations Act. The insurance carrier of a car involved in an accident is responsible for covering the medical costs associated with the driver or any passengers in that car. Medical corporations filing claims to insurance companies must be owned and operated by licensed physicians in order to be entitled to receive no-fault benefits.

In one case, Allstate filed a lawsuit against seven healthcare service providers in New York. The lawsuit alleges the medical corporations acted with other individuals in falsifying documents to make it appear the entities were owned and operated by licensed physicians, when they were, in fact, owned by laypersons. Consequently, approximately $2 million in false claims were allegedly submitted to Allstate.

In another lawsuit, two physicians — Michael D. Green, MD, and Clifford Beinart, MD — four healthcare service providers and another individual are accused of also falsifying documents to make it appear the entities were owned and operated by licensed physicians. Allstate alleges more than $700,000 in false claims were allegedly submitted by these healthcare providers.

Read the Allstate news release about the no-fault lawsuits.

Read other coverage about no-fault lawsuits:

- Two Medical Facilities and Medical Equipment Suppliers Accused of Exploiting New York's No-Fault Automobile Insurance Law, Fraudulent Billing

- Two Physicians, Six Others Charged in No-Fault Fraud Scheme

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