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…