Allstate Sues Florida Neurologic Clinic for $7.6M in False Claims

A Florida neurologic clinic that specializes in treating patients with traumatic brain and spinal cord injuries is being sued by a major automotive insurance company for more than $7 million in false claims stemming from charges it abused patients, failed to provide treatment, and kept them hospitalized without medical justification.

Allstate Insurance Co. has filed suit against the Florida Institute for Neurologic Rehabilitation, Inc., and its owner, Joseph Brennick, in the U.S. District Court for Middle District of Florida under the federal Racketeer Influence and Corrupt Act, for breach of contract, and a variety of fraud charges.

At stake, $7.6 million in allegedly false medical payments for injured drivers insured by Allstate in the state of Michigan.

The Wauchula, Fla.-based FINR advertises itself as the leader in treating traumatic brain injuries, neurorehabilitation, neuropsychiatric disorders, and spinal cord injuries. Its basic services include offering occupational speech physical therapy, and counseling to help injured drivers make the transition from the hospital to their homes.

Although FINR is located in Florida, its largest contingent of patients came from Michigan, where the company has carried out an aggressive and extensive marketing campaign using online resources, circulating print advertising materials, making presentations at conferences, and holding seminars.

No Spending Cap

Unlike most states such as Florida, which caps no-fault automobile medical benefits at $10,000 for emergency cases and $2,500 for non-emergency care, Michigan offers medical benefits with no spending cap. And those medical benefits can be paid out over an unlimited time period.

Allstate charged that Brennick through FINR took advantage of those unlimited benefits in many ways, first and foremost by keeping patients as long as possible.

Under Florida law, FINR is licensed to provide temporary services and all patients are required to have a treatment plan within three days of being admitted and a plan for being returned home or to a longer term facility within 30 days.

Specifically, the law states that all residents shall use the transitional living facility as a temporary measure and not as a permanent home or domicile.

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Allstate Sues Florida Neurologic Clinic for $7.6M in False Claims