Alleged scams cost California doctor, pain clinics $11.4 million in settlement

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Alleged scams cost California doctor, pain clinics $11.4 million in settlement
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The settlement resolves allegations from 2018 to 2021 that Lagattuta and Lags Medical performed medically unnecessary surgeries to implant spinal cord stimulators, an invasive surgery of last resor…

A California physician and his medical practice, which once operated 29 pain clinics statewide, have agreed to pay nearly $11.4 million to resolve allegations of false claims being submitted to federal and state health insurance programs for medically unnecessary procedures and care, a U.S. Attorney in Sacramento said Tuesday.

As part of the settlement, Lagattuta and Lags Medical acknowledged that Lagattuta created what he called an “Artificial Intelligence Team” of non-provider staff “who were required to order at least 150 skin biopsies per week for patients without the consent of the patients’ treating providers at Lags Medical,” Talbert added in the prepared statement.

Lagattuta, according to Talbert, paid a psychiatrist to tell Medicare and Medicaid insurers that the psychiatrist had performed a necessary psychological evaluation on each patient before the surgery and that the patient did not have any preexisting psychological or active substance abuse disorders that would adversely affect their response to the procedure.

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