Golden State Today

California Attorney General Rob Bonta has announced a settlement with U.S. Healthworks (USHW), a chain of occupational and urgent care clinics. The $7.7 million settlement addresses allegations that USHW withheld millions from the State of California in unclaimed property, violating both the Unclaimed Property Law (UPL) and the California False Claims Act (CFCA). This unclaimed property includes patient balances resulting from overpayments.

As part of the agreement, USHW is required to hand over $1.5 million in unclaimed property to the State Controller’s Office.

“When companies cheat the State of California, they cheat the people of California,” said Attorney General Bonta. “U.S. Healthworks knowingly and repeatedly chose not to comply with the law by retaining millions of dollars that did not rightfully belong to them. This $7.7 million settlement signals my office is vigorously committed to protecting California against corporate fraud and financial misconduct.”

Patient balances can occur when insurance payments exceed anticipated amounts after patients have paid out-of-pocket costs. While refunds should be issued in these cases, sometimes refund checks are returned or remain uncashed.

In March 2022, Attorney General Bonta filed a complaint alleging that USHW had possessed unclaimed property as early as 2001 but failed to file required reports until 2018, following notification of an investigation by the Attorney General’s office.

The UPL mandates that all intangible property remaining unclaimed for more than three years must be reported and remitted to the state, with a 12% annual interest on overdue property. The CFCA allows the Attorney General to pursue civil actions for treble damages and penalties against entities making false statements or documents to obtain or avoid paying money or property to the state.

Even after filing reports with California starting in 2018, USHW underreported its holdings in subsequent years up through 2021. The company violated the CFCA by knowingly concealing millions due to California despite repeated internal notifications about these claims, avoiding audits by state authorities.

A copy of the final judgment is available here.