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Radiology Fakery Costs Chiropractor $7 Million

December 12, 2012
Written by: , Filed in: Diagnostic Imaging, Medical Ethics, Practice Management
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A California chiropractor who falsely claimed to be using board-certified radiologists to read X-rays must pay $7 million to Allstate Insurance Company, a Los Angeles County Superior Court judge has ruled.

According to an Allstate news release, Daniel H. Dahan, DC, of Long Beach, California, and his business, Progressive Diagnostic Imaging, Inc., supplied falsified radiology reports for 487 claims submitted to Allstate. The $7 million judgment covers civil penalties and attorneys’ fees, among other things. The judge also prohibited Dr. Dahan from working in the medical field.

Phil Telgenhoff, Allstate’s California field vice president, said in the release:

Insurance fraud is not a victimless crime. Fraud drives up the cost we all pay for insurance, and stealing millions of dollars from insurers cannot and will not be tolerated in California or anywhere across the country.

According to the news release, Dr. Dahan set up Progressive Diagnostic Imaging to solicit X-rays from chiropractors. He promised that board-certified radiologists would read the scans.

Instead, the release says, he used image-analyzing software operated by untrained and unlicensed technicians. He told the technicians to cut and paste signatures of actual board-certified radiologists onto the software-generated radiology reports.  Four radiologists whose names appeared on the reports testified during the trial that they never wrote, signed, or even saw the reports.

Some of the reports backed claims of permanent impairment that were submitted to Allstate, the news release says.

Judge Ernest M. Hiroshige found that the 487 claims presented to Allstate—either directly by Dr. Dahan and Progressive Diagnostic Imaging or by plaintiff attorneys in auto accident cases—involved “falsified medical records” with “no diagnostic, clinical, or medical value whatsoever.”

The judge ordered that letters so stating be sent to all of the affected patients and their referring health-care providers.

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