In the lawsuit, MUHA alleged Franklin, Tenn.-based CHS breached its obligation to repay Medicare for overpayments uncovered in an audit from the Office of Inspector General.
In 2018, CHS sold four hospitals to MUHA. An OIG audit of one of the hospitals found Medicare overpayments. MUHA’s lawsuit alleges that CHS is responsible under the terms of the asset purchase agreement for repaying the Medicare overpayments from 2016-17.
CHS already has a lawsuit pending against MUHA in the Middle District of Tennessee based on amounts CHS argues it is owed from the authority. CHS said MUHA filed a second case in South Carolina based on the same transaction despite the pending Tennessee action. CHS said if the system was notified of the audit promptly, the health system would have appealed the estimated overpayment and MUHA would not have owed anything.
CHS said it will defend the lawsuit in the Middle District of Tennessee.
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