13 latest healthcare industry lawsuits, settlements

From Sutter Health settling a kickback lawsuit to Dignity Health facing a class-action lawsuit over emergency room fees, here are the latest healthcare industry lawsuits and settlements making headlines.

1. Sutter Health to settle kickback lawsuit for $30M 
A lawsuit unsealed Nov. 14 reveals Sacramento, Calif.-based Sutter Health settled allegations of a referral fraud scheme for $30 million — $5.8 million of which will be paid to the whistleblower who filed the case.

2. Investment bank sues Georgia hospital for $4.7M in unpaid fees
Healthcare investment banker Cain Brothers filed a lawsuit against DeKalb Medical Center in Decatur, Ga., claiming the hospital owes more than $4.7 million in financial advisory fees associated with the hospital's merger with Atlanta-based Emory Healthcare.

3. Dignity Health must face class action over ER fees, court rules
San Francisco-based Dignity Health must face a class-action lawsuit filed by uninsured patients seeking a declaration that self-pay patients are liable only for the reasonable value of services or treatment provided, a California appeals court ruled Nov. 12.

4. Beaumont Health sues Michigan regulators after hospital plan is rejected
Southfield, Mich.-based Beaumont Health sued Michigan health regulators, claiming they wrongly rejected the system's application to build a hospital.

5. Life Spine to pay nearly $6M to settle kickback lawsuit
Life Spine, a Huntley, Ill.-based medical devicemaker, agreed to pay nearly $6 million to settle a federal lawsuit alleging two of its executives paid physicians kickbacks to encourage them to use the company's products. 

6. Promise Healthcare accuses former CEO of interfering in hospital deal
Promise Healthcare Group, a hospital and nursing home chain based in Boca Raton, Fla., is accusing its former CEO and a unit of Santa Ana, Calif.-based KPC Group of engaging in a "campaign of misinformation" that forced Promise to reduce the price of two hospitals by nearly $10 million.

7. Cardiologist sues for $20M after New York hospital blocks admitting privileges
Philip Totonelly Jr., MD, filed a lawsuit against Carmel, N.Y.-based Putnam Hospital Center, claiming the hospital and other defendants owe him $20 million for allegedly blocking his application for admitting privileges.

8. Patient claims Michigan medical group employee posted health record on social media
A former Royal Oak, Mich.-based Beaumont Hospital patient is suing the hospital and an affiliated cardiovascular group for wrongly accessing her medical records, which ended up being posted on social media.

9. Vibra Healthcare to pay $6M to settle 2016 whistleblower suit
Mechanicsburg, Pa.-based Vibra Healthcare will pay $6.25 million to resolve whistleblower allegations against Highlands Rehabilitation Hospital in El Paso, Texas.

10. Mold at Seattle Children's Hospital disabled patient in 2018, lawsuit alleges
The family of a teenage patient on Oct. 25 filed a lawsuit against Seattle Children's Hospital, claiming a 2018 infection due to mold found in the hospital disabled their son.

11. DEA sues Colorado pharmacy board for refusing to release patient data
The Drug Enforcement Administration is suing the Colorado State Board of Pharmacy, demanding it share patient information from its prescription drug monitoring program.

12. Contractor's errors prompted $2.7M Medicare refund from Kansas hospital, lawsuit claims
Hutchinson (Kan.) Regional Medical Center is suing the company it contracted with to manage hospital operations, alleging the company's errors resulted in the hospital having to refund Medicare more than $2.7 million in July for overpayments.

13. Missouri appeals court upholds changes to Medicaid DSH payment rules
A federal appeals court in Missouri on Nov. 4 held that a rule issued by CMS requiring Medicaid payments to Disproportionate Share Hospitals to be reduced based on payments hospitals receive from private payers and Medicare is valid.

More articles on legal and regulatory issues:

Accountant headed to prison for embezzling $547K from Missouri health system foundation
Tenet agrees to pay $66M to resolve kickback lawsuit
Sanford Health will pay $20M to settle false claims lawsuit

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