Utah doctor can pursue libel case against state over fraud claims

Physicians and legal experts say the decision might make investigators think twice before unfairly targeting doctors. The state says it's an isolated case.

By Amy Lynn Sorrel, AMNews staff. Sept. 3, 2007.

After Utah neurologist Taj Becker, MD, refused to cave to what she says were state threats of criminal prosecution if she didn't settle billing fraud claims, she spoke out to lawmakers about the alleged intimidation.

When Dr. Becker saw her name posted on a state fraud agency's Web site in a news release insinuating she was guilty -- even though civil and criminal charges filed against her already had been dropped -- she fought back in court.

A federal appeals court handed Dr. Becker a preliminary victory in July. A three-judge panel of the 10th U.S. Circuit Court of Appeals said she can sue the state for libel and retaliation.

State officials say they have no plans to appeal the ruling. Dr. Becker's case returns to a lower court where a judge will decide whether to proceed to trial.

Physicians and legal experts say Dr. Becker's circumstances are not uncommon and that the 10th U.S. Circuit's decision could give doctors some recourse for the reputational harm improper investigations can cause.

Her attorney, Robert R. Wallace, said she sued "to stop a practice [she] felt was highly improper. This was a huge detriment to her personally and financially."

He said the decision is significant because the odds are typically stacked against doctors in fraud cases. Even if doctors did nothing wrong, they are often forced to settle to avoid the publicity of a criminal complaint and higher penalties.

Samuel B. Benham, a health care fraud and defamation lawyer with Las Vegas-based Hunterton & Associates, said that depending on state laws, libel or retaliation claims can be difficult to pursue.