California
I used a medical billing office to process my bills through insurance (3rd payer/Medicare/etc.). Checks were always made out to me, then deposited to their sweep account, and I would receive their reports and a check, less their commission.
They abruptly declared bankruptcy, leaving me with boxes of forms and billing sheets that had to be sorted out to determine what was processed and/or outstanding. My new billing company assisted and in most cases were able to resubmit billing sheets for unpaid charges. The upshot is that I am out over $30,000 of checks that were (though made out to me) cashed and used for other business or personal expenses of the owners. Do they get to walk away under bankruptcy protection?
Speaking with Medicare, their checks are to be only forwarded intact or deposited directly into the physician's bank account.
There is a "meeting of creditors" with the Trustee on 5/9. I have my lists of outstanding charges that were paid but not given to me.
Am I considered a "creditor" even though my dispute is not over non-payment for services, but rather, theft of 3rd payer monies paid to me but used for this company's other obligations? Aren't the funds in question my property (even if in a sweep account) and they have (possibly) illegally absconded with them? Is this fraud and therefore do I have more recourse with the Trustee?
This isn't a custodial account arrangement as with brokers. I know Medicare is not happy with the situation and intends to go after the principals themselves - my bigger concern is with monies sent by the 3rd payer insurance companies.
Other than be prepared and look the judge in the eye, is there anything I'm missing? Google searches have come up empty.
Thanks
MF,MD
I used a medical billing office to process my bills through insurance (3rd payer/Medicare/etc.). Checks were always made out to me, then deposited to their sweep account, and I would receive their reports and a check, less their commission.
They abruptly declared bankruptcy, leaving me with boxes of forms and billing sheets that had to be sorted out to determine what was processed and/or outstanding. My new billing company assisted and in most cases were able to resubmit billing sheets for unpaid charges. The upshot is that I am out over $30,000 of checks that were (though made out to me) cashed and used for other business or personal expenses of the owners. Do they get to walk away under bankruptcy protection?
Speaking with Medicare, their checks are to be only forwarded intact or deposited directly into the physician's bank account.
There is a "meeting of creditors" with the Trustee on 5/9. I have my lists of outstanding charges that were paid but not given to me.
Am I considered a "creditor" even though my dispute is not over non-payment for services, but rather, theft of 3rd payer monies paid to me but used for this company's other obligations? Aren't the funds in question my property (even if in a sweep account) and they have (possibly) illegally absconded with them? Is this fraud and therefore do I have more recourse with the Trustee?
This isn't a custodial account arrangement as with brokers. I know Medicare is not happy with the situation and intends to go after the principals themselves - my bigger concern is with monies sent by the 3rd payer insurance companies.
Other than be prepared and look the judge in the eye, is there anything I'm missing? Google searches have come up empty.
Thanks
MF,MD
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