11 Recent Lawsuits and Settlements Involving Hospitals

The following hospital lawsuits, settlements or legal developments were reported within the past month, beginning with the most recent.

1. California Hospital Claims 1-800-GET-THIN Owners are Behind Failed Bid
Anaheim (Calif.) General Hospital filed suit claiming Michael and Julian Omidi, the brothers behind the 1-800-GET-THIN campaign, agreed to purchase the hospital for millions through a shell name, hiding their disciplinary records.

2. Banner Health Settles Discrimination Charges With EEOC
Phoenix-based Banner Health reached a $255,000 settlement with the U.S. Equal Employment Opportunity Commission, resolving allegations that it denied an employee's requests for accommodation and fired him because of his disability.

3. Judge Lifts Hold on Landmark Medical Center's Suit Against Blue Cross of Rhode Island
A judge lifted a stay on Woonsocket, R.I.-based Landmark Medical Center's lawsuit against Blue Cross & Blue Shield of Rhode Island. The suit claims the payor "starved" Landmark with unjustly inadequate reimbursements.

4. Grady Health in Atlanta Sues Local Governments Over Unpaid Bills
Grady Health System in Atlanta is suing several metro governments in the area for thousands of dollars in unpaid medical bills for inmates who received care at the hospital while in custody.

5. Dartmouth-Hitchcock to Pay $550k for Alleged Overbilling
Dartmouth-Hitchcock Medical Center in Lebanon, N.H., agreed to pay the government upwards of $500,000 to resolve charges that its neurologists overbilled Medicare and Medicaid from 2004 through 2008.

6. Trinity Medical Center in Alabama to Appeal Court Decision Barring Relocation
Trinity Medical Center in Birmingham, Ala., is appealing a circuit court ruling that blocked the hospital's relocation plans. A judge said regulators erred in their 2010 approval of the relocation because occupancy at Trinity's current location is too low, and hospital beds in Jefferson County currently exceed state guidelines.

7. Wyoming Medical Center Nears Settlement With Whistleblower
Wyoming Medical Center in Casper reached a settlement in principle with a whistleblower who claimed the 191-bed hospital overbilled Medicare and Medicaid and fired her in 2009 after she went to the authorities.

8. Christ Hospital in Cincinnati Pays $1.8M in Whistleblower Settlement
Christ Hospital in Cincinnati paid approximately $1.8 million to settle a whistleblower lawsuit that claimed a cardiologist charged Medicare for vascular tests for up to 8,000 patients without reading them.

9. Bert Fish Medical Center Splits $6M Settlement Between Legal Fees, Cash Reserves
The board of Bert Fish Medical Center in New Smyrna Beach, Fla., voted on how to use the $6 million settlement it received from the law firm that bungled its 2010 merger agreement. Half of the settlement will pay back legal fees, but the rest will go into the hospital's cash reserves, bringing Bert Fish closer to its 2009 financial position before the merger talks started.

10. Former Harbor-UCLA CMO Sues County Officials for Conspiracy, Defamation
The former CMO at Harbor-UCLA Medical Center filed a $50-million lawsuit against two county health officials who, he claims, deliberately leaked information to the newspapers, making Dr. Anderson seem like "a criminal and a danger to hospital staff and patients" and jeopardizing his reputation.

11. New York AG Reinforces Religious Accommodation at City Hospitals
The New York City Health and Hospitals Corporation reached a settlement with New York Attorney General Eric Schneiderman to better secure employees' rights to religious accommodations. The settlement stems from the AG's formal investigation into religious observance practices at HHC facilities and Jacobi Medical Center, specifically. Details on violations, if any, were not disclosed.

More Articles on Hospitals and Legal Issues:

5 Legal Issues Surrounding Electronic Medical Records
3 Core Legal Issues for Hospital Marketing Programs
3 Attorneys Discuss Trends in Hospital Litigation Today


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