Maui News

Maui Chiropractor Must Pay Fines for Fraudulent Insurance Claims

July 31, 2015, 8:45 AM HST
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File photo by Wendy Osher.

Maui Now file photo.

By Maui Now Staff

The state Department of Labor and Industrial Relations has ruled that a Maui chiropractor defrauded the County of Maui dozens of times, in what may be one of the greatest number of fraud counts found against a health care provider in county history, according to county officials.

In a press release issued by the Office of Maui Mayor Alan Arakawa, county officials say the administrative ruling states that “Dr. James Hattaway of Maui Family Chiropractic committed 69 counts of fraud, including concealing a material fact, presenting multiple claims for the same injury and 67 fraudulent claims for payment of a health care benefit.”

The press release states that “the violations took place over a year and a half long period and involved Dr. Hattaway’s treatment of an employee of the Maui County Department of Parks and Recreation.”

“According to the facts of the case, the parks employee suffered a back injury while on the job in 2011 and had a medical referral to see Dr. Hattaway for treatment. Almost a year later, while still being treated by Dr. Hattaway, the same employee reinjured his back in a non-work related motor vehicle collision,” the press release states.

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County officials say the state concluded that during this time, “Dr. Hattaway committed fraud by not notifying the county about the vehicle collision and continuing to treat the parks employee for what the county assumed was the work related injury. The state also ruled that Dr. Hattaway was double-billing GEICO Insurance for the motor vehicle collision treatment.”

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As a result Maui County paid $1,948.54 for Dr. Hattaway’s fraudulent billing claims, county officials said. As part of the state’s ruling, Dr. Hattaway must pay $6,900 in fines, according to the county press release.

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