The Department of Industrial Relations and its Division of Workers’ Compensation have suspended Pasadena psychiatrist Jason Hui-Tek Yang from participating in California’s workers’ compensation system.

Dr. Yang was convicted in Riverside County Superior Court for his involvement in an insurance fraud conspiracy that referred patients for unnecessary care to justify workers’ compensation billing.

He was implicated in a second round of charges that expanded a Riverside County case against Peyman Heidary, a chiropractor accused of masterminding a legal and medical scheme to maximize profits by recruiting injured workers and giving them a one-size-fits-all battery of medical treatments. Prosecutors claimed Heidary ran an operation that paid people referred to as “cappers” $100 per patient to recruit injured workers who were provided the same medical care regardless of their injuries.

Heidary and three associates were initially charged in July 2014.  Later charges were filed filed against an additional six people, including three physicians. The 26 page grand jury indictment accused Yang of referring patients for unnecessary care to justify billing for “med-legal” reports, costing about $1,000 each.  Several carriers were specifically named as victims.

Dr. Yang is a 1995 graduate of the University of Southern California, Keck School of Medicine. He was licensed in California in 1998. The Medical Board of California records show his license is still active, and there is no record of disciplinary action.

DWC issued a Notice of Suspension, which Yang appealed. The appeal was heard in April by Hearing Officer William E. Gunn, who issued a recommended determination and order on May 25. The recommended decision was adopted by DWC Acting Administrative Director George Parisotto and the suspension confirmed on June 1. Dr. Yang has over 2,000 active workers’ compensation liens with an estimated total claim value of more than $13.7 million.

AB 1244 (Gray and Daly) requires the DWC Administrative Director to suspend any medical provider, physician or practitioner from participating in the workers’ compensation system in cases in which one or more of the following is true:

1) The provider has been convicted of a crime involving fraud or abuse of the Medi- Cal or Medicare programs or the workers’ compensation system, fraud or abuse of a patient, or related types of misconduct;

2) The provider has been suspended due to fraud or abuse from the Medicare or Medicaid (including Medi-Cal) programs; or

3) The provider’s license or certificate to provide health care has been surrendered or revoked.

DIR’s fraud prevention efforts are posted online, including frequently updated lists for physicians, practitioners and providers who have been issued notices of suspension, and those who have been suspended pursuant to Labor Code §139.21(a)(1).