Free press releases distribution network?

Agency / Source: Rivkin Radler, LLP

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!



First Jury Trial to Apply 'Malella' Results in Unanimous Verdict on Behalf of Insurers - In, ‘Andrew Carothers. M.D., P.C. v. Allstate Insurance, et. al,’ jury finds “clear and convincing evidence” that physician did not own and control professional medical corporation, relieving the insurance industry of $20 million in pending claims
First Jury Trial to Apply 'Malella' Results in Unanimous Verdict on Behalf of Insurers

 

PRZOOM - /newswire/ - Uniondale, NY, United States, 2008/07/23 - In, ‘Andrew Carothers. M.D., P.C. v. Allstate Insurance, et. al,’ jury finds “clear and convincing evidence” that physician did not own and control professional medical corporation, relieving the insurance industry of $20 million in pending claims.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Financial/Legal/Venture Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

In the first significant case to be tried before a judge or jury in New York applying the “Corporate Practice of Medicine Prohibition” principles established in the landmark decision of 'State Farm v. Malella,' a Richmond County jury unanimously found that a medical professional corporation was owned and controlled by two (2) non-physicians rather than the physician whose name appeared on the certificate of incorporation. The effect of the verdict is that the medical professional corporation is ineligible to collect first-party no-fault benefits, and represents a major victory for the New York automobile insurance industry.

After a four and a half week trial in Richmond County Civil Court, before Judge Peter Sweeney, a unanimous (6-0) verdict was delivered on July 17, after less than 4 hours of deliberation. The case was the consolidation for trial of several thousand individual no-fault lawsuits; the verdict delivered by the jury relieves the New York automobile insurance industry of approximately $20 million in pending claims.

Barry I. Levy, a partner at Rivkin Radler LLP, who served as co-lead trial counsel on behalf of more than 50 insurers, called the unanimous verdict an important one for both insurers and patients. “The decision will reinforce the insurance industry’s efforts to curb the fraud and abuse which has victimized the industry for nearly a decade. For patients, Carothers is also a major victory as it will help ensure that the delivery of medical care focuses on what is appropriate, necessary and in the best interests of the patient, rather than pecuniary gain for non-physicians,” he said.

In Carothers, the jury found by “clear & convincing evidence” that:
• The professional corporation was “fraudulently incorporated”; i.e.: that Dr. Andrew Carothers did not own and control it;
• Dr. Carothers did not engage in the practice of medicine while the professional corporation was providing services to patients. The law requires that a physician has to not only own and be in control to be a shareholder of a professional corporation, but also has to be involved in the medical services delivered through the professional corporation.
• Clear and convincing evidence of Dr. Carothers’ lack of ownership and control was demonstrated in part by the division of the professional corporation’s profits while the corporation was providing medical services in 2005 and 2006. During that time, Dr. Carothers received approximately $135,000, while the corporation was paid more than $12 million by insurers. Essentially, all of the money that the insurance industry paid was siphoned to Hillel Sher and Irina Vayman, who were found by the jury to be “owners,” and in control of the professional corporation.
• Under Malella, physicians are required to be the sole "owners" of professional medical corporations and a physician may not front for non-physicians to create an entity for the purposes of billing and collecting on claims. Malella also held that insurance companies were entitled to look behind the corporate paperwork to determine what the reality was with respect to who was actually in control and receiving the profits. In doing so in Carothers, the jury found that there was no mystery as to who was the “true owner” of the professional corporation.

The decision has important implications for medical providers and insurers in New York. It will help to further reform efforts within the community involving the delivery and billing for medical services under New York's no-fault laws by ensuring that only physicians own and control medical practices; helping to curb fraudulent claims and non-physician involvement in the delivery of medical services. In addition, Carothers should have both short and long-term remedial consequences related to non-physicians who would seek to purchase physician licenses; i.e.: “Doc-in-the-Box,” for the purpose of creating and operating professional corporations rather than establishing legitimate arms-length business relationships.

Currently several states have prohibitions on the corporate practice of medicine that are similar to New York’s, including New Jersey, Illinois, Texas and Michigan. In the long-term, it is likely to impact other states much like Malella did.

Serving as co-lead counsel with Barry I. Levy of Rivkin Radler LLP, were John E. McCormack of John E. McCormack, P.C., Craig Freiberg of Freiberg & Peck, LLP and Vincent Gerbino of Bruno Gerbino & Soriano, LLP. Smith Valliere & Martinez PLLC and Marvin Ben-Aron, represented the plaintiff.

Experts who testified on behalf of the defendants-insurers included (i) Mark Warshavsky, CPA, a partner at Gettry Marcus Stern & Lehrer, CPA, P.C. -who testified concerning the areas of forensic accounting and business valuation, (ii) Bruce C. Zablow. M.D., who testified in the areas of radiology and private radiology practices, and (iii) Michael Abboud, the President of Monarch Medical, Inc., who testified in the area of the purchase and sale of used MRI equipment.

Experts who testified on behalf of the plaintiff included (i) Gary I. Fields, Esq. who testified concerning customs in the MRI industry and (ii) Terrance Gill, who testified concerning business valuation.

Rivkin Radler LLP is a national law firm with offices in Uniondale, Long Island, New York City and New Jersey.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Financial/Legal/Venture Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Agency / Source: Rivkin Radler, LLP

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick PRZOOM - Press & Newswire Visibility Checker

 

Distribution / Indexing: [+]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Financial/Legal/Venture articles,
CATCH Visitors via Your Competitors Announcements!


First Jury Trial to Apply 'Malella' Results in Unanimous Verdict on Behalf of Insurers

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name PRZOOM - Press & Newswire and LINK as the source.
 
  For more information, please visit:
Is this your article? Activate ALL web links by Upgrading to Press Release PREMIUM Plan Now!
|
Contact: Laurie Bloom - RivkinRadler.com 
516-357-3251 laurie.bloom[.]rivkin.com
 
PRZOOM / PRTODAY - Newswire Today disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Rivkin Radler, LLP securities in any jurisdiction including any other companies listed or named in this release.

Financial/Legal/Venture via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!




Read Latest Press Releases From Rivkin Radler, LLP / Company Profile


Read Financial/Legal/Venture Most Recent Related Press Releases:

Societe Generale Group has Agreed to Sell the Entire Stake of Boursorama in Onvista AG to Comdirect Bank AG
Infinera to Participate in Upcoming Investor Conference
Propel Financial Services Partners with Clear Payment Solutions
Digital Payments Power Growth in Booming Asia-Pacific Financial Technology Landscape Notes Frost & Sullivan
Digital Readiness Key to Growth Opportunities in the Financial Services Market
Prairie Capital Advisors Announces The Sale of Cornerstone Treatment Facilities Network to An ESOP
Koch Agrees to Invest Over $2 Billion in Infor
FTI Consulting Recognized as a Top Service Provider in the Legal Industry
GE Completes Spin Off and Demerger of Bank BPH Core Bank to Alior Bank
ALM Expands Senior Leadership Team, Organization Focused on Customers and Transformation

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
 
NewswireToday Celebrates 10 Years in Business
Find business coaching, life coaching, executive coaching and corporate coaching, best selling coaching books, ...



PREMIUM Members


Visit  JobsWare.com

Visit  Triggr & Bloom

Visit  La Bella Bakery Artisan Bakery Arizona







 
  ©2016 PRZOOM — Limelon Advertising, Co.
Home | About PRZOOM | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneur newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today