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Two Chiropractors Found Guilty of Fraud in Comp Cases

July 10, 2002

A federal court in Seattle has found the former owners of the Alderwood Back & Pain Clinic guilty of conspiring to commit mail fraud and health care fraud, sentencing the two chiropractors to 10 months in federal prison, two years probation and 200 hours in community service.

Sandy Smith

Doctors Randall E. Woodward and Patrick K. Osborne also were ordered to pay restitution to the Department of Labor and Industries and Premera Blue Cross. Late last week, L&I received a check for $78,789.97. Premera was paid $70,000. The pair also paid $3,000 in fines.

The convictions came after an 18-month investigation by the FBI, the U.S. Postal Service, Premera Blue Cross, Orion Insurance Co. and fraud experts in L&I's Provider Fraud Program. The pair, who provided chiropractic services for injured workers, provided unneccesary treatment or billed Premera Blue Cross for treatments not received.

In addition to the repayment, L&I has revoked the two chiropractors eligibility to treat workers injured on the job.

About the Author

Sandy Smith

Sandy Smith is the former content director of EHS Today, and is currently the EHSQ content & community lead at Intelex Technologies Inc. She has written about occupational safety and health and environmental issues since 1990.