Dr. Nelson's actions of scheduling unnecessary lab tests are an example of what type of fraud?

The correct answer highlights that Dr. Nelson's actions of scheduling unnecessary lab tests fall under health insurance fraud. This type of fraud occurs when a healthcare provider bill an insurance company for services or tests that are not needed or are not performed. By scheduling unnecessary lab tests, Dr. Nelson is essentially manipulating the healthcare system for financial gain, which constitutes a fraudulent act against health insurance policies and the trust established between patients and providers.

Health insurance fraud can take many forms, and in this case, it specifically relates to providing or recommending services that are not justified based on a patient's actual medical needs. This misrepresentation leads to financial losses for insurers and can potentially compromise the quality of care for patients, highlighting the gravity of such fraudulent behaviors in the healthcare industry.

The other options do not fit this scenario: subrogation involves the process where an insurance company seeks recovery from a third party after paying a claim, operating legally refers to compliant business practices, and tortfeasor pertains to an individual or entity that commits a tort, not specifically relating to fraud in the healthcare sector.