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CA surgery clinics overbilled, insurance giant claims

San Jose Mercury News, June 4, 2012

In a $20 million lawsuit, Aetna Insurance claims the Santa Clara County Bay Area Surgical Management is making millions of dollars and enriching doctors by sidestepping state laws meant to protect patients and control costs. The suit says Bay Area Surgical Management has recruited dozens of local doctors to invest in its outpatient facilities and then to refer patients to those facilities, which charge exorbitant prices for medical procedures. The management firm denies the allegations. Aetna's suit reflects the growing discomfort among some local doctors with the network of surgery centers.