A lawsuit has been filed against Diagnostic Imaging of Rockville Centre and Rockville Centre Diagnostic Imaging, two medical imaging facilities in Long Island New York, for allegedly billing Allstate Insurance companies for $1.3 million in fraudulent charges.
On October 18, Allstate Insurance Co., Allstate Indemnity Co., Allstate Property & Casualty Insurance Co., and Allstate Fire and Casualty Insurance Co. filed complaints in the United States District Court for the Eastern District of New York against the imaging centers for alleged fraud among other counts. According to Allstate’s claim, Diagnostic Rockville Centre “unlawfully managed and controlled by one or more non-physician, and were caused to submit to Allstate hundreds of fraudulent and/or non-compensable charges for diagnostic radiology services.”
Allstate alleges that they were deceived into paying out no-fault payments totaling $1.3 million to the imaging centers. However, they claim that were not entitled to charge or receive no-fault benefit payments. Allstate has requested a trial by jury and is seeking “award of actual and consequential damages,”according to Legal NewsLine.
This isn’t the first time the insurance giant has pressed charges against an imaging center for alleged fraudulent activity. In 2012, the Los Angeles County Superior Court ordered Progressive Diagnostic Imaging, Inc to pay Allstate $7 million in civil penalties.