10 recent healthcare industry lawsuits, settlements

From the Supreme Court ruling in favor to the FDA to a judge ordering Prospect Medical to pay more than $17 million within 10 days, here are 10 recent healthcare industry lawsuits, settlements and legal developments Becker’s has reported since June 10:

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1. Madera, Calif.-based Valley Children’s Healthcare is facing a lawsuit alleging it paid on-call employees less than minimum wage.

2. Los Angeles-based Prospect Medical Holdings was ordered to pay more than $17.3 million of unpaid bills to hospital vendors within 10 days by Rhode Island Superior Court Judge Brian Stern on June 12. 

3. A year and a half after four organizations and four physicians filed a lawsuit against the FDA’s approval of mifepristone to terminate a pregnancy, the Supreme Court unanimously ruled in favor of the FDA. 

4. Service Employees International Union 121RN was ordered by a Los Angeles-based federal arbitrator to pay Riverside (Calif.) Community Hospital, part of Nashville, Tenn.-based HCA Healthcare, $6.26 million in damages for holding an “unlawful strike” in June 2020. 

5. Inspire Health Medical Group agreed to pay a $1.2 million settlement to Community Regional Medical Center in Fresno, Calif., after neurosurgeons allegedly planned a walkout in 2021 and gave the system less than 32 hours’ notice.

6. Elizabeth Holmes, founder of the now-defunct blood testing startup Theranos, is appealing her fraud conviction. 

7. A North Carolina federal judge denied the Federal Trade Commission’s request to bar Winston-Salem, N.C.-based Novant Health from acquiring two North Carolina hospitals from Franklin, Tenn.-based Community Health Systems until its appeal is resolved.

8. CMS must recalculate the Medicare Advantage star ratings for Anthem Blue Cross Blue Shield of Georgia, a federal judge ruled. 

9. CityMD agreed to pay the federal government $12 million to settle fraud allegations related to COVID-19 tests. 

10. Humana’s challenge to a CMS rule implementing stricter auditing standards on Medicare Advantage plans can continue, a federal judge ruled.

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