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Former Cedars-Sinai employee allegedly stole records, committed fraud

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Cedars-Sinai Medical Center

Once again a Los Angeles hospital is having trouble keeping its medical records private, but this time it's a much more drastic case. Now, a former employee from the Cedars-Sinai Medical Center's billing department is accused of taking the records of 1,000 patients.

The man took these records home, then proceeded to create a fictitious lab and submitted workers' compensation claims to insurance companies based on lab tests that were, obviously, never performed.

While the fraud shouldn't have caused any direct financial harm to the patients involved, they have been warned to watch their credit reports just in case. So far, none of them have reported any problems.

The former employee, whose name is James Allen Wilson, is being held on $895,000 bail. He has pleaded not guilty to the charges of identity theft, insurance fraud and grand theft.

To learn more about the case:
- read this L.A. Times piece

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Another argument for the position that ALL business entities billing for healthcare-related services (not only physicians) MUST have a unique federal id# like the NPI #. And any healthcare payer should periodically audit its payees to verify that they, in fact, performed the billed service and even exist.
Look at what just went down in Florida, billions paid out by Medicare to non-existent suppliers and deceased physicians.
No excuse to permit this sort of thing to go on.

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