Sebastopol Hospital Conspired With Medical Lab In Billing Scheme, Anthem Alleges In Lawsuit
The partnership at the center of Anthem’s legal challenge was forged last spring as a way to help the financially strapped Sebastopol hospital.
Santa Rosa Press Democrat:
Anthem Blue Cross Lawsuit Accuses Sebastopol Hospital Of Fraudulent Billing
Health insurance giant Anthem Blue Cross has filed suit against Sonoma West Medical Center, accusing the Sebastopol hospital of conspiring with an out-of-state medical laboratory in a billing scheme that Anthem claims defrauded it and its members of $16 million. The lawsuit, filed June 1 in U.S. District Court, alleges that Sonoma West Medical Center knowingly allowed Florida-based Reliance Labs to use it as a drug testing front. Reliance allegedly used the hospital provider’s credentials to bill for testing on urine samples taken from Anthem members who were not local patients and had never visited the Sebastopol facility, according to the lawsuit. (Espinoza, 6/6)