In Andrew Carothers, M.D., P.C. v. Allstate Insurance, et. al, a jury unanimously found that a medical professional corporation was owned and controlled by parties other than the physician whose name appeared on the certificate of incorporation. To find out more about the case's implications, Claims' Christina Bramlet spoke with Barry Levy, who served as co-lead trial counsel on behalf of more than 50 insurers.
The Carothers case signified the first jury trial to apply principles set forth in Mallela v. State Farm. What are these principles?
In the most basic sense, it means that non-doctors are not permitted to own or control medical corporations. Insurance companies have every right to look behind the facade to discern whether the actual operation of the corporation is consistent with established standards.
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