Allstate Sues Florida Pain Clinic for Millions in Alleged Fraud

The clinic signed an agreement in November to stop billing for fraudulent charges, but Allstate says that was quickly breached.

The insurance company is accusing the clinics of fraud that violates federal anti-racketeering statutes. Image via Shutterstock.

Allstate Insurance filed a federal lawsuit on Dec. 28 in the U.S. District Court for Southern Florida, alleging Florida Anesthesiology & Pain Clinic, managed by Dr. Ravi Xavier, has engaged in systematic fraud, billing millions in fraudulent charges for unnecessary and risky medical procedures.

The lawsuit follows a failed November agreement where the clinic vowed to cease such practices. However, according to Allstate, the clinic breached this agreement within a month, prompting the insurer to seek legal recourse.

"The defendants’ relationships with their personal injury attorney referral sources directly and intentionally led to the bills for medically unnecessary and excessive services detailed herein,” the lawsuit said. This fraudulent behavior included referrals from Steinger, Greene & Feiner, a prominent Florida injury law firm previously known as Steinger, Iscoe & Greene.

According to the complaint, the law firm allegedly pressured clients into undergoing unnecessary surgeries to inflate auto accident claims and insurance bills. The lawsuit accuses the clinic of billing exorbitant amounts for supposed surgeries and invasive procedures, often without attempting conservative treatments or proper follow-up care.

Allstate contends it paid millions for surgeries and spinal procedures that were either unnecessary or never performed. The lawsuit also alleges the patients were often directed by attorneys to the defendants to bolster insurance claims, despite seeking little or no medical treatment initially.

The complaint further details the clinics' alleged fraudulent practices, including billing "outrageous sums" and fabricating patient records with significantly incorrect vital statistics. This raised red flags for Allstate, which compared these records with those from other providers.

Initially, Allstate felt compelled to pay the claims to avoid liability for rejecting valid demands. However, the insurance company is now accusing the clinics of fraud that violates federal anti-racketeering statutes. The suit does not specify if criminal charges are also being pursued.

Florida Anesthesiology & Pain is a major chain in the state, with multiple locations and significant financial success. Xavier, along with his wife, reportedly purchased a $19 million waterfront mansion near Palm Beach in 2021.

Neither Xavier nor the attorneys from Steinger, Greene & Feiner have commented on the lawsuit. The clinics have not responded to the lawsuit or filed a motion to dismiss.

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