The complaint alleges that USHW possessed unclaimed property as early as 2001 but did not file mandated reports with the state until 2018.
California Attorney General Rob Bonta has filed a complaint against U.S. HealthWorks Inc., claiming that the Los Angeles-based national chain of occupational and urgent care clinics knowingly withheld from the state millions of dollars in unclaimed overpayments.
The complaint, filed this month in Los Angeles County Superior Court, alleges that USHW's actions and its failure to timely refund the overpayments is a violation of the state's Unclaimed Property Law and the California False Claims Act.
“Let’s get one thing straight: corporate evasion is corporate fraud,” Bonta said. “Companies don’t get to pick and choose when to follow the law because it serves their benefit. When companies cheat the State of California, they cheat the people of California.”
USHW ran 78 occupational and urgent care clinics in California. In 2018, USHW was bought by Select Medical, and the clinics were renamed Concentra.
Officials at Select Medical declined to comment on the merits of the complaint, citing a company policy against commenting on ongoing litigation. However, the company said it is prepared to vigorously defend itself in court.
The complaint alleges that USHW possessed unclaimed property as early as 2001 but did not file mandated reports with the state until 2018 after being notified of the Attorney General’s investigation.
Under the Unclaimed Property Law, intangible property that remains unclaimed by the true owner for more than three years after it became payable or distributable, must be reported and then remitted to the state.
The UPL also mandates 12% interest per year on property that should have been reported or remitted to the state. Even when USHW filed reports with California, the company underreported the unclaimed property it held in 2018, 2019, 2020, and 2021, the complaint alleges.
Bonta said USHW violated the CFCA when it failed to report its unclaimed property holdings, and thus knowingly concealing millions of dollars due to the state. Although USHW’s unreported property claims were repeatedly brought to management’s attention, management declined to comply and report the property so as to avoid an audit by state authorities, the complaint alleges.
“Let’s get one thing straight: corporate evasion is corporate fraud. Companies don’t get to pick and choose when to follow the law because it serves their benefit.”
California Attorney General Rob Bonta
John Commins is the news editor for HealthLeaders.
KEY TAKEAWAYS
USHW ran 78 occupational and urgent care clinics in California. In 2018, USHW was bought by Select Medical, and the clinics were renamed Concentra.
The complaint alleges that USHW's failure to refund overpayments is a violation of the state's Unclaimed Property Law and the California False Claims Act.
Select Medical declined to comment on the complaint but said it is prepared to vigorously defend itself in court.