South Bay surgery facilities sued for $39 million by second insurer [San Jose Mercury News, Calif.]
| By Lisa M. Krieger, San Jose Mercury News, Calif. | |
| McClatchy-Tribune Information Services |
The suit, filed Monday by United Healthcare Services, echoes assertions in a
Bay Area Surgical Management denies the allegations, saying that they are inaccurate -- and represent the two insurers' attempt to force the company to sign a contract with very low reimbursement rates for patient care.
"It's a strong-arm tactic," said Bobby Sarnevesht of Surgical Management. "They think if they come at us, all at once, we'll be bullied into signing an unfavorable contract."
The company, which manages outpatient surgical centers, says it gets paid just a fraction of what insurers pay to surgery centers affiliated with hospitals like
"Our patients' lives are not less valuable than a
In the suit, filed in Santa
--Submitting inflated and fraudulent bills.
--Failing to disclose waivers of patient co-pays.
--Creating incentives for doctors to refer patients and paying its doctors kickbacks through above-market rates of return for investment in the facilities.
United claims in one instance that
It claims that, in 2009, Forest Surgery Center in
Surgical Management's text messages promised doctors a 525 percent return on their investments, United claims. The insurer asserts these were exorbitant returns made possible by fraudulent billing.
United does not explain why it took so long for it to recognize the higher fees. In its suit, Aetna said it didn't notice that it was paying high fees because it relied on a computerized system, which does not review the size of the claim.
Both United and Aetna's suits ask that Surgical Management end its practices.
The surgical company said that its fees are lower than comparable hospital-run surgical centers. And it denies that it waives co-payments. "We collect from hundreds of thousands of patients," Sarnevesht said. "But it is hard to collect money from people who don't have money."
It does not excessively reward the doctors who invest in the facilities, Sarnevesht said.
The co-founders and managers of Bay Area Surgical Management, named in the suit, are Sarnevesht and parents
The outpatient surgery centers named in the suit are:
--
--Forest
--Knowles Surgery Center,
--Los Altos Surgery Center,
--National Ambulatory Surgery Center,
Contact
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