Workers comp medical providers suspended for fraudPosted On: Feb. 17, 2017 1:25 PM CST
Seven medical providers that filed more than 8,500 fraudulent liens totaling $59 million in claims are now suspended from serving injured workers under California’s workers compensation system.
The Oakland, California-based Department of Industrial Relations and its Division of Workers’ Compensation announced Thursday that the providers were convicted of workers comp fraud or have been suspended from the Medicare or Medicaid programs for medical fraud. Among the list of suspensions are orthopedic surgeons, psychologists and chiropractors from the Los Angeles, San Diego and Pasadena metro areas who were convicted of such offenses as mail fraud, insurance fraud conspiracy, referral and kickback schemes, the department said in a statement.
The suspensions are in line with new state regulations that require the comp division to suspend a medical provider from participating in the workers compensation system when convicted of fraud.
“Workers’ compensation fraud undermines the state’s efforts to increase payments and improve services to injured workers, and to reduce costs for employers,” DIR Director Christine Baker said in the statement. “Removing fraudulent providers and staying lien claims of those criminally-charged with fraud will further reduce costs in the system.”