Long Island Radiology v. Allstate Insurance Company

• Decision Date: 23 January 2007
• Docket Number: 2006-05943.
• Parties: LONG ISLAND RADIOLOGY, Respondent, v. ALLSTATE INSURANCE COMPANY et al., Appellants.
• Court: New York Supreme Court — Appellate Division

36 A.D.3d 763

830 N.Y.S.2d 192

2007 NY Slip Op 00496

LONG ISLAND RADIOLOGY, Respondent, v. ALLSTATE INSURANCE COMPANY et al., Appellants.

2006-05943.

Appellate Division of the Supreme Court of the State of New York, Second Department.

Decided January 23, 2007.

In an action to recover assigned no-fault benefits for medical services rendered, the defendants appeal, as limited by their brief, from so much of an order of the Supreme Court, Nassau County (Phelan, J.), dated June 7, 2006, as denied their motion for summary judgment on the issue of whether they may raise lack of medical necessity as a basis for denying claims for reimbursement to radiologists seeking payment for magnetic resonance imaging tests provided to no-fault patients pursuant to prescriptions, and granted that branch of the plaintiff's cross motion which was for summary judgment on that issue. [See 12 Misc 3d 1167(A), 2006 NY Slip Op 51090(U) (2006).]

Ordered that the order is reversed insofar as appealed from, on the law, with costs, the defendants' motion for summary judgment on the issue of whether they may raise lack of medical necessity as a basis for denying claims for reimbursement to radiologists seeking payment for magnetic resonance imaging tests provided to no-fault patients pursuant to prescriptions is granted, and that branch of the plaintiff's cross motion which was for summary judgment on that issue is denied.

The plaintiff, the owner and operator of radiology facilities that perform magnetic resonance imaging tests (hereinafter MRIs), commenced this action against the defendants to recover assigned no-fault benefits for MRIs performed on patients injured in motor vehicle accidents pursuant to prescriptions issued by the patients' physicians and/or medical providers. The amended verified complaint alleges that the plaintiff performs MRIs on patients at the request of medical providers without making a diagnosis or performing a physical examination and that the defendants improperly deny many of these claims on the grounds of "lack of medical necessity." Following the joinder of issue, the defendants moved for summary judgment on the issue of whether they may raise lack of medical necessity as a basis to deny claims for reimbursement to radiologists seeking payment for MRIs provided to no-fault patients pursuant to prescriptions, and the plaintiff cross-moved, inter alia, for summary judgment on that issue. The Supreme Court denied the defendants' motion and granted that branch of the plaintiff's cross motion which was for a determination that the defense of lack of medical necessity is not available against radiologists performing MRIs pursuant to prescriptions because these radiologists do not assess medical necessity. We reverse.

New York's no-fault insurance law, formally known as the "Comprehensive Automobile Insurance Reparations Act" (Insurance Law art 51), was enacted with the objective of promoting prompt resolution of injury claims, limiting cost to consumers, and alleviating unnecessary burdens on the courts (see Pommells v Perez...