10 Recent Lawsuits and Legal Developments Involving Hospitals

The following lawsuits, settlements, court decisions or other legal developments involving healthcare providers were reported within the past month, beginning with the most recent.

1. California Supreme Court Upholds Whistle-Blower Protection for Physician
The California Supreme Court upheld whistle-blower protections for nephrologist Mark Fahlen, MD, who claims his privileges were revoked from Sacramento-based Sutter Health hospitals out of retaliation. The court ruled that he did not need to exhaust other legal remedies before filing such a claim.

2. Justice Dept. Joins Whistle-Blower Suit Against Tenet, HMA
The U.S. Department of Justice intervened in a whistle-blower suit that accuses Dallas-based Tenet Healthcare and Health Management Associates, based in Naples, Fla., of providing kickbacks to obstetrics clinics that referred undocumented Hispanic women to several of the health systems' hospitals for labor and delivery.

3. Settlement Proposed in Overtime Lawsuit Against Wilkes-Barre General
A $475,000 settlement would resolve a class-action lawsuit that alleges Wilkes-Barre (Pa.) General Hospital miscalculated overtime pay. The suit, which alleges that the company wrongly used the 8-80 overtime system before Pennsylvania Gov. Tom Corbett permitted it, covers 583 workers.

4. Lawsuit Claims Long Island Hospitals Failed to Assist to Deaf Patient
A lawsuit alleges several New York hospitals denied interpretation services and hearing assistance for a deaf patient. Facilities named in the suit include Winthrop-University Hospital in Mineola, Good Samaritan Hospital Medical Center in West Islip and Gurwin Jewish Nursing & Rehabilitaion Center in Commack.

5. University of Louisville, Norton Healthcare Ordered Into Mediation
A Kentucky judge ordered the University of Louisville and Norton Healthcare into mediation to settle their months-long dispute over Kosair Children's Hospital in Louisville. Franklin County Circuit Judge Thomas Wingate told both parties he would appoint a mediator, but he did not provide a deadline for Norton and University of Louisville to settle the dispute.

6. Federal Judge Dismisses Nevada Patient-Dumping Suit
A federal judge dismissed a suit against Rawson-Neal Hospital in Las Vegas, which had accused the psychiatric hospital of giving patients one-way tickets to California.

7. UPMC, City of Pittsburgh Hearing Delayed Until April
The hearing for the City of Pittsburgh's challenge to UPMC's tax exemption was delayed from this month until April 16. Allegheny County Court of Common Pleas Judge R. Stanton Wettick granted the city's request for the delay.

8. Former RegionalCare CEO Claims He Was Terminated Without Cause, Severance Pay
Kent Wallace, former CEO of Brentwood, Tenn.-based RegionalCare Hospital Partners, filed suit against the company, claiming he was terminated without proper severance. He is seeking damages including but not limited to the monetary value of payments for termination without cause, which he claims were built into his contract.

9. Former Texas Hospital CFO Charged With Fraud
Joe White, former CFO of Shelby Regional Medical Center in Center, Texas, was indicted with alleged fraud and aggravated identity theft violations in the U.S. District Court, Eastern Division in Texas. Mr. White allegedly improperly claimed the hospital had met CMS' electronic health record meaningful use requirements for the 2012 fiscal year, resulting in a $785,655 payment to the hospital from CMS for alleged attestation of MU compliance.

10. Halifax Health's Legal Fees Hit $21M Mark
Daytona Beach, Fla.-based Halifax Health has spent $21 million in legal fees so far fighting a massive whistle-blower lawsuit filed in 2009. Last August, Halifax reported having spent $15 million fighting the suit — an amount that was expected to grow in light of the March 2014 trial date.

More Articles on Hospital Lawsuits and Settlements:
Medical Malpractice in America: 15 Latest Statistics
10 Most-Read Legal Stories of 2013
7 Key Legal Concepts for Today's Hospital and Health System Leaders

 

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