16 latest healthcare industry lawsuits, settlements

From Kaiser Foundation Health Plan accusing a former senior claims manager of embezzling $7 million to an ex-hospital CFO heading to jail for grand theft, here are the latest healthcare industry lawsuits and settlements making headlines.  

1. Alabama judge temporarily blocks abortion restrictions
An Alabama federal judge temporarily blocked two new abortion restrictions that would ban clinics from operating near schools and outlaw the most commonly used second trimester abortion procedure.

2. Minnesota hospice provider to pay $18M for alleged false claims to Medicare
Eden Prarie, Minn.-based Evercare Hospice and Palliative Care, now Optum Palliative and Hospice Care, will pay $18 million to resolve allegations that it claimed Medicare reimbursement for hospice care for patients who were not terminally ill.

3. Former Aetna employee sent to prison for stealing 50 customer identities
A former employee at Aetna's Plantation, Fla.-based office will serve 32 months in prison, three years of supervised release and pay $16,264 in restitution for comprising the identities of 50 customers.

4. Hospital claims self-insured employers conspired with UnitedHealth, Cigna in embezzlement scheme
Red Oak Hospital in Houston filed a string of lawsuits against self-insured employers alleging the companies entered into unlawful agreements with UnitedHealthcare that allow the insurer to improperly divert their employees' healthcare funds. The hospital filed a similar lawsuit against a company with a self-funded plan administered by Cigna.

5. 4 hospitals drop from lawsuit challenging OMNIA health plan
Just three of seven New Jersey hospitals that filed suit against Horizon Blue Cross Blue Shield of New Jersey last year over the insurer's tiered OMNIA health plan remain in the suit.

6. Rocky Allen enters guilty plea, could serve more than 17 years for drug tampering
Former surgical technician Rocky Allen pled guilty to charges of tampering with a consumer product and obtaining a controlled substance by deceit.

7. No mistrial for University of Chicago Medical Center $53M in birth injury lawsuit
The University of Chicago Medical Center failed to obtain a mistrial in a medical malpractice lawsuit with a $53 million verdict.

8. Sovereign Health sues Health Net for $55M in unpaid services
San Clemente, Calif.-based Sovereign Health, a mental illness and drug addiction treatment provider, sued Los Angeles-based Health Net for $55 million in allegedly unpaid medical services.

9. Ex-CEO of defunct Long Beach substance abuse center indicted for $50M fraud scheme
Four people were charged in a superseding indictment for allegedly participating in a scheme that submitted nearly $50 million in fraudulent claims to California's Drug Medi-Cal program.

10. Kaiser accuses ex-employee of embezzling $7M
A former senior claims manager at Kaiser Foundation Health Plan, a subsidiary of Oakland, Calif.-based Kaiser Permanente, is accused of stealing $7 million from his employer before he was fired.

11. Tuomey sues law firm for $117M over allegedly bad advice in whistle-blower suit
Sumter, S.C.-based Tuomey Healthcare filed a lawsuit against Nexsen Pruet, claiming the Columbia, S.C.-based firm's legal malpractice caused Tuomey to lose a federal whistle-blower lawsuit.

12. Court bars VCU Health from administering brain death test on toddler
The Virginia Supreme Court denied a request by Richmond-based Virginia Commonwealth University Health System to perform tests to determine whether a 2-year-old is brain dead.

13. Ophthalmologist pays $55k to resolve false Medicare billing allegations
A Massachusetts-based ophthalmologist and his practice have agreed to pay $55,000 to resolve alleged violations of the False Claims Act.

14. Ex-hospital CFO heads to jail for grand theft
Bonner General Health's former CFO Norilina Harvel will spend 90 days in jail for embezzling more than $200,000 from the Standpoint, Idaho-based hospital.

15. Ala. court upholds ruling in Accretive debt collection suit
The U.S. District Court for the Southern District of Alabama ruled in favor of Accretive Health in a class-action lawsuit alleging the company violated the Fair Debt Collection Practices Act.

16. Former UAB Hospital food services employee charged with $1M cash theft
Federal prosecutors charged a former University of Alabama at Birmingham employee with stealing more than $1 million over six years from a cash room she oversaw.

More articles on health law:

19 recent lawsuits involving hospitals
13 recent healthcare industry lawsuits, settlements
DOJ nearly doubles False Claims Act penalties



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