From a healthcare executive sentenced to prison for his role in a $100 million bribery scheme to a skilled nursing facility operator settling a False Claims Act case, here are the latest healthcare industry lawsuits and settlements making headlines.
1. Healthcare executive gets prison time for role in $100M bribery scheme involving 38 physicians
David Nicoll, president of Parsippany, N.J.-based Biodiagnostic Laboratory Services, was sentenced to six years in prison June 13 for his leading role in a fraud scheme in which physicians were paid kickbacks for blood sample referrals worth more than $100 million.
2. Illinois health system nears $62.5M pension settlement
Former employees of Hospital Sisters Health System, a 15-hospital system based in Springfield, Ill., asked a judge to approve a $62.5 million settlement in a lawsuit alleging the health system underfunded its pension plan.
3. Mayo Clinic attempts to block IRS from questioning CEO
Rochester, Minn.-based Mayo Clinic filed an $11.5 million lawsuit against the Internal Revenue Service in 2016, and the health system is trying to keep the IRS from deposing CEO John Noseworthy, MD, before the trial.
4. Seattle Times responds to ex-Swedish Health neurosurgeon's defamation lawsuit
The Seattle Times asked a federal judge to dismiss a lawsuit filed in April by Johnny B. Delashaw Jr., MD, the former chairman of the Swedish Neuroscience Institute in Seattle, alleging the newspaper knowingly reported false information about him.
5. Blue Cross accuses North Carolina hospital of overbilling by $76M
The legal battle between a North Carolina hospital and Blue Cross Blue Shield of North Carolina continues after the hospital recently reasserted its claim that the insurer is wrongfully withholding reimbursement for lab tests.
6. Operator of 116 SNFs will pay $30M to settle billing fraud allegations
Louisville, Ky.-based Signature Healthcare, which operates 116 skilled nursing facilities across the nation, agreed to pay more than $30 million to settle False Claims Act allegations.
7. Judge: BCBS plans can appeal lawsuit claiming automatic antitrust violation
The Blue Cross Blue Shield Association can appeal claims that the way it does business may be an automatic violation of federal antitrust regulations.
8. Patient sues Virginia hospital CEO, staff for allegedly conducting medical tests without consent
An anonymous patient filed a lawsuit against Charlottesville-based University of Virginia Medical Center's CEO and medical staff June 12, claiming officials administered medical tests on the patient without her consent.
9. Kansas hospital loses Medicare billing privileges, may be forced to close
CMS terminated Overland Park, Kan.-based Blue Valley Hospital's Medicare contract in April, and the hospital recently faced another setback when a federal judge ruled she did not have jurisdiction to hear the hospital's case against HHS and CMS challenging the Medicare termination decision.
10. Whistle-blower lawsuit accusing UnitedHealth of Medicare Advantage fraud dismissed
UnitedHealth Group won a dismissal of a lawsuit accusing the health insurer of Medicare Advantage fraud.
11. Massachusetts first state to name Purdue Pharma execs, owner in opioid crisis lawsuit
Massachusetts Attorney General Maura Healey brought a lawsuit June 11 against OxyContin maker Purdue Pharma as well as its executives and directors, accusing the company of illegally promoting opioid use. The suit makes Massachusetts the first state to sue the drugmaker's executives to hold them accountable.
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