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- BUSINESS, Page 50Business NotesSCAMSAn Unhealthy Profit
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- They were a welcome sight around health clubs, malls and
- nursing homes throughout Southern California. The mobile medical
- labs offered that great American come-on, something for nothing
- -- in this case, free medical exams. But last week the
- ubiquitous vans became a symbol of a disease contributing to the
- exploding cost of U.S. health care: insurance fraud. A Los
- Angeles grand jury returned a 175-count indictment against
- brothers Michael and David Smushkevich, along with 10 others,
- charging that they used the freebie checkups to submit $1
- billion in fake claims. All told, they allegedly collected more
- than $50 million in what may be the biggest scam of its kind
- ever.
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- Typically, "patients" who underwent the diagnostic exams
- at Smushkevich facilities had no health problems. But their
- insurance companies were allegedly billed as much as $10,000 for
- tests warranted by nonexistent ailments. By changing the names
- and locations of their operations, the accused connivers kept
- a step ahead of the law -- for a while.
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