Press Release  Two Medical Companies to Write off $1 Million in Consumer Debt, Cease Collection Activities to Resolve Alleged Unlawful Billing and Collection Practices

Boston — Resolving allegations of unlawful billing and debt collection practices, two medical companies have agreed to write off more than $1 million in alleged debts owed by Massachusetts consumers, cease all collection actions against them and pay restitution to consumers who paid amounts not owed, Attorney General Maura Healey announced today.

The companies, which allegedly operated unlicensed dermatology clinics in Brookline and West Roxbury that closed in 2014, billed Massachusetts consumers for amounts that were not due or in excess of what was payable. In their efforts to collect purported debts, the companies allegedly threatened to send debts to collection and even threatened legal action for nonpayment of debts, even while knowing these threats were false.

“No one should be subjected to false threats or deceptive collection practices, including patients who go to their providers seeking care,” said AG Healey. “We know these debt collection practices occur in many sectors and our office will continue to pursue those who attempt to exploit Massachusetts consumers for their own profit.”

The AG’s Office alleges that Family Dermatology of Pennsylvania, PC and Family Dermatology, PC, a Georgia corporation, engaged in deceptive billing and debt collection practices in violation of state law.

Pursuant to the assurance of discontinuance, filed in Suffolk Superior Court on Monday, the companies are prohibited from advertising or operating unlicensed medical clinics in Massachusetts or deceptively billing or engaging in debt collection in the state.  

The companies will also make a payment of $5,000 to the Commonwealth with an additional $200,000 to be suspended pending compliance with the settlement.

Both companies will administer the restitution process. In order to be potentially eligible to receive restitution, Massachusetts consumers who believe they paid one or both the companies amounts they did not owe must submit a claim within 180 days from Sept. 26 by:

(1) Email to Billing@myfamilyderm.com (with a copy to FamilyDermatologyClaims@state.ma.us), and/or;

(2) Mail to Family Dermatology, 629 Beaver Ruin Road, Suite B, Lilburn, GA 30047 (with a copy to Family Dermatology Claims, c/o Health Care Division, Health Care and Fair Competition Bureau, Office of the Attorney General, One Ashburton Place, 18th Floor, Boston, MA 02108). 

This matter was handled by Assistant Attorney General Emiliano Mazlen with assistance from Division Chief Karen Tseng and Legal Analyst Perusi Namulwa of AG Healey’s Health Care Division and Kevin McCarthy and Anthony Crespi of AG Healey’s Civil Investigations Division.

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