Healthcare consultancy with offices in 10 states files for bankruptcy

Quality Reimbursement Services, a healthcare consultancy based in Arcadia, Calif., entered Chapter 11 bankruptcy on Sept. 13.

In its bankruptcy petition, QRS listed its assets as less than $10 million. The company listed its liabilities as between $10 million and $50 million.

QRS filed the voluntary bankruptcy petition to protect itself from the claim of a large creditor while it purses an appeal, Michael Rubin, a lawyer for QRS, told Becker's Hospital Review

"In July 2019, a judgment was obtained against QRS in the amount of approximately $8 million by a former employee. The judgment was based upon the decision by 2 of 3 arbitrators ruling that QRS had breached an agreement to pay certain commissions to the former employee. A third arbitrator dissented and opined that QRS owed nothing to the employee," Mr. Rubin said in an emailed statement. "A Chapter 11 bankruptcy proceeding has been filed to allow QRS to continue business as usual while it pursues its appeal of the judgment with the California Court of Appeal. QRS expects the Court of Appeal to vacate the arbitration award consistent with the dissenting opinion in the arbitration issued by the Chair of the arbitration panel, Hon. Nickolas J. Dibiaso (Ret.), himself a former California Court of Appeal Justice."  

According to QRS' website, the company has offices in California, Alabama, Arizona, Colorado, Florida, Illinois, Michigan, New Jersey, Texas and Washington. QRS has been reviewing Medicare and Medicaid cost reports for more than a decade, and it represented a group of more than 130 hospitals that were part of a $666 million settlement with HHS in 2008 in a dispute over Medicare disproportionate share hospital reimbursement, according to QRS' website.

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Editor's note: This article was updated Sept. 17 at 7:45 am to include the statement from the lawyer representing QRS. 

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