11 latest healthcare industry lawsuits, settlements

From a health insurance company settling a data breach lawsuit to an appeals court ruling that hospitals can't challenge the method behind Medicare payments, here are the latest healthcare industry lawsuits and settlements making headlines.

1. Hospitals can't challenge Medicare payment methodology, court rules
The Medicare statute bars challenges to the methodology underlying estimates used to calculate disproportionate share payments owed to hospitals, according to a June 4 opinion from the U.S. Court of Appeals for the D.C. Circuit.

2. Cybersecurity lawsuit against Allscripts tossed by judge
A federal judge tossed out a class-action lawsuit against EHR vendor Allscripts on June 4 over a ransomware attack that left several of its hospital clients unable to access their EHRs last year.

3. Accountant admits embezzling $558K from Missouri health system foundation
A woman pleaded guilty June 4 to embezzling nearly $558,000 from Saint Luke's Foundation, a nonprofit organization that supports Kansas City, Mo.-based Saint Luke's Health System.

4. Premera Blue Cross agrees to $74M settlement after exposing 10.6 million patients
Premera Blue Cross agreed to settle a data breach lawsuit that was brought against the insurer after a cyberattack in May 2014 exposed 10.6 million patients.

5. Indiana hospital owner will pay $3.6M to settle physician kickback allegations
Rialto Capital Management and one of its former affiliates agreed to pay $3.6 million to resolve allegations that they violated the Anti-Kickback Statute, Stark Law and the False Claims Act.

6. CHS hit with securities fraud class-action lawsuit
A federal class-action complaint filed May 30 alleges Franklin, Tenn.-based Community Health Systems and three top executives made false and misleading statements about the company's business that artificially inflated its stock price.

7. Former CMO begs judge to stop purge of Arizona hospitals' patient records
The former CMO of two Arizona hospitals that abruptly closed last year is urging a judge to alter a plan that calls for thousands of patients' medical records to be destroyed later this month.

8. DOJ alleges Kansas hospital made false claims about EHR technology
Burlington, Kan.-based Coffey Health System agreed to pay $250,000 to settle allegations that it submitted false claims to Medicare and Medicaid for incentive payments for meaningfully using electronic health records.

9. Oklahoma Heart Hospital to pay $2.8M to settle false-billing allegations
Oklahoma Heart Hospital in Oklahoma City will pay $2.8 million to settle allegations of fraudulent Medicaid billing practices.

10. UK HealthCare foundation subject to open records laws, judge rules
A circuit court judge upheld a 2015 decision from the Kentucky Attorney General's Office, affirming that the foundation for Lexington, Ky.-based UK HealthCare is a public agency, and therefore should be subject to open records laws.

11. Purdue Pharma hit with 4 more opioid lawsuits
Three more states and the District of Columbia filed lawsuits June 3 accusing Purdue Pharma of falsely marketing OxyContin and downplaying the risks of addiction, which fueled the opioid epidemic.

More articles on legal and regulatory issues:

Texas patient recruiter gets prison time for role in $20M Medicare fraud scheme
18 latest lawsuits involving hospitals
Healthcare CEO sentenced to prison in bribery case

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