Family Business Pays Price For Rampant Medical Fraud In State
A tsunami of workers’ compensation claims began to overwhelm Suzie Kim's family business -- and her suspicions of fraud were confirmed as criminal charges began piling up against some medical providers who treated her workers.
With Workers’ Compensation Fraud Comes Soaring Insurance Costs
Suzie Kim had a hunch that something was wrong. Janitors from her Los Angeles cleaning company flocked to many of the same medical providers for work injuries over and over again. The work is undeniably hard on the body. But as 20, 40 and then more than 80 work-injury cases stacked up at the company with 350 janitors, they began to take a toll on the family business. Sky-high medical bills led to sky-high workers’ compensation insurance rates. ... Employers like Kim are paying the price for what prosecutors throughout California describe as more than a $1 billion in medical fraud plaguing the state workers’ compensation system. (Jewett, 5/10)