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The looting of workers' comp

Medical kickback scheme uncovered, local chiropractor charged

A federal grand jury unsealed indictments today (November 11) charging medical professionals and service companies with a kickback scheme that fleeced California Workers' Compensation insurance companies.

Basically, the medical professionals were bribed to refer patients to companies that provided services such as X-rays, MRIs, and extracorporeal shock wave therapy. Charges that were revealed today mainly involved chiropractors, but U.S. Attorney Laura Duffy said, "Today's indictments are only the first wave of charges in what we believe is rampant corruption on the part of some physicians and chiropractors in their dealings with the health care system in general and California's Workers' Compensation System in particular."

Here's how it worked: patients who said they were injured on the job filed a workers' compensation claim with the state and sought treatment. The medical professional, such as a chiropractor, prescribed treatment such as an X-ray or extracorporeal shock wave therapy. A radiologist then bribed the chiropractor in exchange for patient referrals. The bribes were paid in clandestine huddles. For example, El Cajon Boulevard chiropractor George Reese, who referred patients to a Los Angeles area service provider, allegedly was paid $6000 in cash, hidden in a gift bag, in the parking lot of an Oceanside restaurant.

San Diego area people charged today included Ruben Martinez of Murrieta, Julian Garcia of National City, and Reese and his corporation, George K. Reese Chiropractic.

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A federal grand jury unsealed indictments today (November 11) charging medical professionals and service companies with a kickback scheme that fleeced California Workers' Compensation insurance companies.

Basically, the medical professionals were bribed to refer patients to companies that provided services such as X-rays, MRIs, and extracorporeal shock wave therapy. Charges that were revealed today mainly involved chiropractors, but U.S. Attorney Laura Duffy said, "Today's indictments are only the first wave of charges in what we believe is rampant corruption on the part of some physicians and chiropractors in their dealings with the health care system in general and California's Workers' Compensation System in particular."

Here's how it worked: patients who said they were injured on the job filed a workers' compensation claim with the state and sought treatment. The medical professional, such as a chiropractor, prescribed treatment such as an X-ray or extracorporeal shock wave therapy. A radiologist then bribed the chiropractor in exchange for patient referrals. The bribes were paid in clandestine huddles. For example, El Cajon Boulevard chiropractor George Reese, who referred patients to a Los Angeles area service provider, allegedly was paid $6000 in cash, hidden in a gift bag, in the parking lot of an Oceanside restaurant.

San Diego area people charged today included Ruben Martinez of Murrieta, Julian Garcia of National City, and Reese and his corporation, George K. Reese Chiropractic.

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Comments
6

Chiropractic has been questionable/controversial for longer than any of us have lived. On one hand it comes across as sheer quackery, yet many people are totally convinced it works. Many years ago the health insurers decided to pay claims for chiropractic services. I'd always assumed they thought it was all fakery, but if patients thought it worked, well, it worked!

Lately I've been seeing full page ads in the Light News/U-T that tout some chiropractor and his dedication to health and well being. All well and good, I suppose, except that others in the health field disagree totally. Since chiropractic has this appearance of legitimacy, it becomes highly challenging to know just who is right. Total honesty and clarity would make a huge difference. Not to say that "conventional" medicine never strays or never defrauds, but it is worth noting that in this scandal, chiropractors are at the center of the mess.

Nov. 10, 2015

Visduh: I know a neurosurgeon who says that chiropractors are his best source of business.

I have been surprised how many San Diegans seem to rely on chiropractors. In other cities I have lived in, I seldom heard chiropractors mentioned. Best, Don Bauder

Nov. 10, 2015

Perhaps you know more about what is going on here but the article says a Radiologist is at the center of all this.

Nov. 13, 2015

If it cracks like a duck . . . and pots like a duck . . .

Nov. 10, 2015

Twister: Tell me how a duck cracks and pots. Best, Don Bauder

Nov. 11, 2015

If you put money on a table, people will come to pick it up. And California puts an awful lot of money out on tables. Workers Comp is ridden through-and-through with fraud. But the state rarely cares, as they get to bleat about how many people are "victims" who therefore need more government running their lives.

Nov. 13, 2015

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