13 latest healthcare industry lawsuits, settlements


From four national hospital groups suing HHS to keep their negotiated rates secret to a neurologist suing a patient's family member over a negative Yelp review, here are the latest healthcare industry lawsuits and settlements making headlines.

1. Texas sues HHS to reverse $25M in Medicaid repayments
The state agency that administers Medicaid to Texans filed a lawsuit to keep tens of millions of dollars in payments the federal government argues it is owed.

2. Hospital groups sue HHS to block price transparency rule
Four organizations representing hospitals and health systems across the nation sued HHS Dec. 4, challenging a final rule that requires hospitals to disclose the rates they negotiate with insurers beginning in 2021.

3. Pennsylvania health system files lawsuit against Nuance over malware attack
Beaver, Pa.-based Heritage Valley Health System filed a lawsuit against Nuance over a 2017 malware attack that caused major disruption at the system.

4. Neurologist sues patient family member for bad Yelp review
Nandigam Neurology in Murfreesboro, Tenn., filed a $25,000 lawsuit against a patient's family member after she posted a negative review of neurologist Kaveer Nandigam, MD.

5. Dignity Health's class-action settlement actually worth $700M, workers say
A California federal judge refused to approve a deal in October requiring Dignity Health to pay more than $100 million to settle a class-action lawsuit accusing the San Francisco-based health system of using a religious Employee Income Retirement Security Act exemption it wasn't entitled to. Current and former Dignity workers argue the deal is actually worth more than $700 million in court documents filed Nov. 25.

6. Solara Medical Supplies hit with class-action lawsuit after data breach
A patient filed a class-action lawsuit Nov. 29 against Solara Medical Supplies, claiming his personal and medical information is at risk after a data breach at the device company.

7. UI Hospitals and Clinics settles with patient for $1.2M over retained surgical items
The state of Iowa will pay a former patient at University of Iowa Hospitals and Clinics $1.2 million to settle a lawsuit alleging physicians left a towel and staple in his bowel after surgery.

8. California surgeon gets prison time for role in $580M billing fraud scheme
An orthopedic surgeon was sentenced to 30 months in federal prison Nov. 22 for his role in a healthcare fraud scheme that resulted in the submission of more than $580 million in fraudulent claims, mostly to California's worker compensation system.

9. Former Iowa hospital CEO given suspended sentence for theft charges
A judge handed down a suspended prison sentence Dec. 3 to Lon Butikofer, PhD, RN, the former CEO of Regional Medical Center in Manchester, Iowa, who pleaded guilty to first-degree theft in October.

10. Walgreens, Kroger sue drugmakers, allege $2.8B in overcharges for diabetes med
Walgreens, Kroger and other retail pharmacy chains filed a lawsuit Dec. 2 against five drugmakers, alleging they participated in an antitrust scheme to dramatically hike the price of the diabetes drug Glumetza.

11. Jury rejects Mercy physician's claims of unequal pay
A federal jury ruled in favor of Janesville, Wis.-based Mercy Physician Association Nov. 13 in a wage discrimination lawsuit, rejecting allegations that a female family practice physician was paid less than her male peers for the same work.

12. Mercyhealth wins appeal to build Illinois microhospital
Rockford, Ill.-based Mercyhealth is one step closer to building a microhospital in Crystal Lake, Ill., after an appellate court ruled against its competitor.

13. Generic drug trade group sues California over 'pay-to-delay' law
A trade group for generic drugmakers, the Association for Accessible Medicines, filed a lawsuit against the attorney general of California for enacting a law banning "pay-to-delay" deals between drugmakers.

More articles on legal and regulatory issues:

OIG to recover nearly $6B in fraudulent payments
10 specialties with the most lawsuits
Hospital billing fraud: 7 latest settlements

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