Chicago Sun Times reports Health firm accused of $234 mil. fraud

April 27, 2005

BY JIM RITTER Health Reporter

Deerfield-based VeridianHealth says it has enjoyed “incredible growth” in the tests it performs to diagnose pinched nerves and carpal tunnel syndrome.

The company says its name is inspired by a Latin word for true and trusted.

But in a lawsuit made public Tuesday, Illinois Attorney General Lisa Madigan charged VeridianHealth has fraudulently billed health insurers for $234 million.

Madigan charged the company uses unqualified technicians to conduct unnecessary tests. And in some cases, VeridianHealth charged for tests that weren’t done, the suit alleges. VeridianHealth has “wasted valuable insurance dollars that should have been available for legitimate medical procedures,” Madigan said. Its conduct “is one reason medical insurance rates continue to rise.”

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