Florida Brain Clinic Being Sued $7-M For False Med-Payments
A neurologic clinic Florida that specializes in traumatic brain and spinal cord treatment is being sued for $7.6 million in false claims.
Insurance giant Allstate Insurance Co. filed suit recently against Florida Institute for Neurologic Rehabilitation, Inc. (FINR) based in Wauchula, under the Racketeer Influence and Corrupt Act, a variety of fraud charges, and for breach of contract, before the U.S. District Court in Florida’s Middle District.
Said insurance company is accusing the clinic for failure to provide treatment, abusing patients and keeping them hospitalized without medical justification.
Allstate is suing the clinic for $7.6 million due to false medical payments it had paid for their insured drivers from the state of Michigan that sought treatment in the neurologic clinic. Though the clinic is based in Florida, the largest chunk of their patients came from the Michigan.
The insurance company also accused the clinic’s owner, Joseph Brennick, of taking advantage of Michigan’s no-spending cap on no-fault benefits which provide insured drivers in the said state of unlimited benefits. Allstate pointed out that the clinic has taken advantage of these benefits in many ways, one by keeping patients as long as possible as to charge them a daily per diem rate that in some cases would reach $1,000 per day.