One of America’s largest insurance companies is suing Dr. Dipti Shah and Dr. Russell Shah, for alleged medical billing fraud.
In short, the doctors are accused of ordering unnecessary medical procedures to artificially inflate insurance settlements of patients involved in car accidents.
The suit filed September 18th by Allstate Insurance accuses the Shahs of presenting “grossly exaggerated bills for treatment that was medically unnecessary” for 215 claimants.
According to the document, the treatment “was based upon a standardized pattern developed by Dr. Dipti Shah and Dr. Russell Shah with the express purpose of creating inflated medical bills that would be used to leverage artificially enhanced settlement values to be paid by insurance companies rather than providing patient-centered treatment with the goal of actually healing injuries.”
Both doctors operate Radar Medical Group and the University Urgent Care Facility. Dr. Shah is a kidney disease specialist while Dr. Shah is a neurologist.
“Allstate’s goal is ultimately to keep costs down for Nevada consumers and to prevent fraud,” Allstate spokeswoman Chelci Hudson said. The fraud loss to the company is estimated at $1.7 million, said Hudson.
Steve is the Managing Shareholder of Steven J. Klearman & Associates, a civil litigation law firm located in Reno, Nevada. He practices primarily in the areas of civil litigation and injury law, and has authored one of the definitive guides to Nevada civil law that is widely used by Nevada judges and attorneys, his book entitled Elements of Nevada Legal Theories.