21 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. Indiana Judge Sides With Neurosurgeon Who Opposed Practice Merger
A judge ordered a physicians group in Indianapolis to pay approximately $1 million to a neurosurgeon who opposed the group's merger with another physician practice.

2. Forrest General in Mississippi Responds to Wesley Medical Center's Allegations
Forrest General Hospital in Hattiesburg, Miss., and a local ambulance provider have answered a lawsuit filed against them by Wesley Medical Center, denying allegations they funneled patients to Forrest General.

3. Former Iowa Hospitals and Clinics Employee Allegedly Embezzled $272k
An employee from University of Iowa Hospitals and Clinics, based in Iowa City, allegedly defrauded the system by more than $272,000 throughout the past 10 years by selling hospital-funded IT equipment on eBay.

4. Westchester Medical Center in New York to Pay $7M for Alleged Medicaid False Claims
Westchester Medical Center in Valhalla, N.Y., agreed to a $7 million settlement to resolve civil fraud allegations that the hospital submitted false claims to Medicaid for nearly 10 years.

5. Mississippi Hospital's Lawsuit Alleging Mismanagement by Quorum Health Heads to Trial
The lawsuit filed by Natchez (Miss.) Regional Medical Center against its former operator, Brentwood, Tenn.-based Quorum Health Services, is proceeding in preparation of a Nov. 30 trial date.

6. Lovelace Health Claims New Mexico Physician Group is Steering Patients Away
Albuquerque, N.M.-based Lovelace Health Plan filed suit against ABQ Health Partners, claiming the physician group has engaged in a "smear campaign" to steer Lovelace members to other health insurers.

7. Police Official Claims UPMC and Monroeville Municipality Violated HIPAA
The assistant police chief from Pennsylvania's Monroeville municipality filed a complaint, claiming University of Pittsburgh Medical Center, Monroeville and a former police chief violated the Health Insurance Portability and Accountability Act.

8. Former NewYork-Presbyterian Employees Sentenced for Kickback Scheme
Two former employees from NewYork-Presbyterian Hospital were sentenced after defrauding the hospital through a kickback scheme.

9. Birmingham Can't Sue County to Keep Alabama's Cooper Green Hospital Open
The city of Birmingham, Ala., lost its legal battle to keep Cooper Green Mercy Hospital open. Under Chapter 9 regulations, lawsuits against the county are stayed until the county recoveries from bankruptcy. Birmingham had asked a bankruptcy judge to remove that freeze so it could sue the county in a state court, but a judge decided to keep it in place.

10. Amended Suit Against Adventist Hospitals in Florida Alleges Overbilling in EDs
A whistleblower suit accusing seven Adventist Health hospitals in Florida of overbilling Medicare for radiology services was amended to include overbilling in the hospitals' emergency departments.

11. Medical Staff Bylaws Are Not Contracts, Minnesota Court Rules
In Minnesota, a district court ruled that medical staff bylaws do not constitute as binding contracts between physicians and hospitals.

12. In Countersuit, West Penn Says Highmark is Holding it "Hostage"
Pittsburgh-based West Penn Allegheny Health System filed a countersuit to Highmark's lawsuit, urging the court to lift an injunction that prevents West Penn from talks with other suitors.

13. Methodist Hospitals in Indiana Reaches $5M Settlement With HIT Companies
Gary, Ind.-based Methodist Hospitals settled a suit with several health information technology companies, resolving allegations that the system spent more than $16 million on a computer system that never worked.

14. Physicians Appeal Virginia's CON Requirement to Higher Court
A group of physicians are appealing a September court decision that dismissed their challenge to Virginia's mandate for certificates of need.

15. Highmark Files Motion to Dismiss UPMC Lawsuit
Pittsburgh-based Highmark filed a motion to dismiss a lawsuit filed by University of Pittsburgh Medical Center that claims Highmark and West Penn Allegheny Health System conspired to destroy UPMC.

16. Beebe Medical Center Reaches $123M Settlement for Victims of Pedophile Pediatrician
Attorneys for Beebe Medical Center in Lewes, Del., reached a $123 million settlement in a class-action lawsuit filed by victims of a former pedophile pediatrician who held privileges at the hospital.

17. Hospitals Challenge Florida's Reimbursement Regulation for Undocumented Immigrants
Eighteen hospitals from the south Florida and Tampa Bay area are challenging a regulation that determines compensation for the treatment of undocumented immigrants in emergency departments. An administrative judge began hearing arguments Oct. 9 in a case centered on a regulation enacted by Florida's Agency for Health Care Administration in 2010.

18. Physician Sues Memorial Hermann in Houston for Retaliation, Defamation
A physician sued Houston-based Memorial Hermann Hospital System, claiming it placed him on the National Practitioners Data Bank's adverse action report after he tried to address violations of the federal Emergency Medical Treatment and Active Labor Act at one of the system's hospitals.

19. Suit Claims Nevada's Boulder City Hospital Fired Employee Out of Retaliation
Paula Sellers, a former employee from 67-bed Boulder City (Nev.) Hospital's health information department, claims she was fired after voicing concern about the hospital's billing.

20. UW Medical Foundation, Physicians Plus Agreement Puts End to Lawsuit
Madison-based UW Medical Foundation reached an agreement with Physicians Plus, putting an end to the insurer's lawsuit. The UW Medical Foundation-Physicians Plus contract was set to expire Dec. 31, 2012. The contract will now continue through Dec. 31, 2015.

21. SEIU Sues Jackson Health, CEO Carlos Migoya For Public Records
In early October, Service Employees International Union Local 1991 sued Miami's Jackson Health System and CEO Carlos Migoya over public record requests about hospital business.

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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