Allstate is accusing Surgery Partners, Inc. and a group of Florida surgery centers of running a multimillion-dollar billing scheme that quietly drained its auto insurance payouts.
That, in essence, is the story Allstate tells in a lawsuit filed on April 17, 2026 in the US District Court for the Middle District of Florida. The insurer's targets include Surgery Partners, Inc., an anesthesia group known as Anesthesiology Professional Services, Inc., and a roster of surgical and pain-management centers operating under familiar local names: Lake Worth Surgical Center, The Gables Surgical Center, Jacksonville Beach Surgery Center, Armenia Ambulatory Surgery Center, Millenia Surgery Center, Park Place Surgery Center, and Tampa Pain Relief Center.
The picture Allstate paints is familiar to anyone who has worked a stack of PIP files. Patients show up after car accidents. Bills follow. Claims get paid. Except, Allstate says, a good number of those bills were for procedures that were unnecessary, exaggerated, or - in some cases - never actually performed. The result, the insurer alleges, was "millions of dollars" paid out on claims "based on the false, fabricated, unlawful, and improper medical services billed by the defendants."
Some of the claims read like a clinic on how to spot suspicious billing. Take corpectomies - a spinal procedure that, by definition, involves removing a sizable portion of a vertebra. Allstate says Lake Worth Surgical regularly billed for them after doing little more than routine bone shaving. In one case, according to the filing, the surgeon's own notes said bone removal fell below the threshold and the surgeon did not himself bill for a corpectomy. The surgery center, Allstate alleges, billed anyway - including for "a biomechanical device that is only used (and only billable) in conjunction with a corpectomy."
Then there is the unbundling. Allstate says the surgery centers routinely split out charges that were supposed to be baked into the main procedure - things like fluoroscopy, operating microscopes, laminectomies, allografts, and instrumentation - and tacked them on as separate line items. The supply charges alone, billed under CPT code 99070, came to at least $3,870,000 across the defendant centers, even though, according to the filing, supplies are already covered by the facility fee.
Allstate leans on Florida's no-fault law to justify walking away from the bills, pointing to the statute that limits PIP benefits to "reasonable expenses for medically necessary" care tied to a motor vehicle accident, capped at $2,500 or $10,000. If a service was not necessary, the argument goes, the insurer never owed a cent.
The suit asks for triple damages under the federal racketeering statute, plus a court order freeing Allstate from paying any still-pending claims from the defendants - and barring them from billing its policyholders for the balance.
For claims leaders and special investigations teams, the interesting part is who is in the caption. Allstate is not just going after the individual clinics. It has named Surgery Partners, Inc. itself - which, according to the filing, owned and controlled each of the surgery centers and the anesthesia group - an escalation worth watching when carriers weigh how far up a corporate chain to reach.
The allegations are just that, for now. The defendants have not yet responded, and nothing has been decided.
