N.C. Baptist Hospital in Winston Salem, N.C., will pay approximately $5.4 million to settle a federal suit alleging its group health plan required employees to pay more in fees than other corporate clients paid, according to a Winston-Salem Journal report.
Baptist co-owns the health plan, MedCost, with Carolinas HealthCare System in Charlotte. The hospital has denied any wrongdoing, and an attorney for the hospital said approximately 11,000 people are affected by the settlement. Some current and former employees could be compensated for damages, especially overpayment.
The suit claimed the hospital selected a network in which it had a stake because it would provide the greatest reimbursement and would help ensure other large networks did not gain additional market share, driving down future reimbursements that NCBH might receive.
These alleged actions would violate the hospital's responsibilities under the federal Employee Retirement Income Security Act.
Read the Winston-Salem Journal report on N.C. Baptist Hospital.
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Baptist co-owns the health plan, MedCost, with Carolinas HealthCare System in Charlotte. The hospital has denied any wrongdoing, and an attorney for the hospital said approximately 11,000 people are affected by the settlement. Some current and former employees could be compensated for damages, especially overpayment.
The suit claimed the hospital selected a network in which it had a stake because it would provide the greatest reimbursement and would help ensure other large networks did not gain additional market share, driving down future reimbursements that NCBH might receive.
These alleged actions would violate the hospital's responsibilities under the federal Employee Retirement Income Security Act.
Read the Winston-Salem Journal report on N.C. Baptist Hospital.
Related Articles on Hospital Settlements:
4 Kentucky Providers Will Repay $26.4M to Passport Health Plan as Part of SettlementNew Hampshire's Exeter Hospital Settles Charges of Retaliation Against Whistleblower
Pennsylvania's Divine Providence: Billing Errors Due to Misunderstanding of Medicare Language