California DIR Suspends 7 Workers’ Comp Medical Providers for Fraud

California’s Department of Industrial Relations and its Division of Workers’ Compensation has suspended seven medical providers from participating in the state’s workers’ comp system.

The providers were convicted of workers’ comp fraud or have been suspended from the Medicare or Medicaid programs for medical fraud, and they have filed more than 8,500 liens in California’s workers’ comp system with a total of claim value of at least $59 million, according to the DIR.

The actions by the DIR were made possible by Assembly Bill 1244, which passed last year. The bill requires the DWC administrative director to suspend any medical provider, physician or practitioner from participating in the workers’ comp system when convicted of fraud.

An additional three providers who were notified of the pending suspension have filed appeals of the action. Those appeals are in process.

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