13 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. Maury Regional in Tennessee Settles False Claims Allegations With $3.6M
Maury Regional Medical Center in Columbia, Tenn., agreed to a settlement of roughly $3.6 million to resolve False Claims Act allegations, which it voluntarily reported after an internal audit found discrepancies in the hospital's billing for ambulance transportation from 2004 through 2009.

2. Lehigh Valley Health Network Settles Nurse Pay Case for $4.5M
Lehigh Valley Health Network, based in Allentown, Pa., agreed to pay $4.5 million to settle a lawsuit claiming the health system failed to pay nurses for work done before and after shifts and during their lunch breaks.

3. St. Dominic's in Mississippi Wrapped up in Lawsuit With Former MLB Player
St. Dominic Hospital in Jackson, Miss., is moving forward with construction on a sports complex despite the fact it is embroiled in a lawsuit with a former Major League Baseball player over a similar project on the same land. Chris Snopek, owner of Performance Sports Academy and former baseball player for the Chicago White Sox and Boston Red Sox, recently sued the hospital, alleging he shared his "confidential thoughts" and "preliminary design and plans" with St. Dominic on a sports complex project. He said St. Dominic and he entered into a letter of intent in 2007 — but the hospital then dumped him as a partner and took his ideas. The hospital claims the letter of intent with Mr. Snopek expired in 2008, and it never entered into another agreement with him.

4. Suit Claims University General Hospital in Texas Defrauded Joint Venture Partners
University General Hospital in Houston is facing allegations that it defrauded its partners for a joint venture project in Alvin, Texas. ACHDC LLC and Palicio Gate filed suit against the hospital, Houston-based University General Health System, UGHS Alvin (Texas) Hospital and Skymark Development Company in Houston, claiming University General agreed to build a hospital in 2011 with ACHDC and Palicio Gate. University General allegedly began secret negotiations with Skymark to build a different hospital in Alvin, eventually terminating its joint venture agreement with the plaintiffs in May.

5. Atlantic Health, Overlook Medical Center Settle Overbilling Allegations With $9M
Overlook Medical Center in Summit, N.J., and its parent, Atlantic Health System, will pay roughly $9 million to settle allegations of Medicare overbilling. The government claimed from January 2002 through July 2009, Overlook billed Medicare for inpatient services that should have been charged as outpatient care. The amount overbilled was not specified.

6. Sutter Health to Pay Marin General $21.5M in Arbitration
Marin General Hospital in Greenbrae, Calif., was awarded $21.5 million from arbitration stemming from a dispute with Sacramento, Calif.-based Sutter Health, which formerly operated Marin General. Arbitrator Rebecca Westerfield, a retired circuit court judge from Kentucky, ruled that Sutter must compensate Marin General for profits it took prior to returning control of the hospital to Marin Healthcare District two years ago.

7. Christus Spohn Health Pays $5.1M to Settle False Claims Allegations
Christus Spohn Health System, based in Kingsville, Texas, has paid a $5.1 million settlement to resolve allegations that its hospitals submitted false claims to Medicare. Six Christus Spohn hospitals in the Corpus Christi area allegedly submitted false claims by using inpatient codes for procedures that should have been billed as outpatient services.

8. 7 Cardiologists Banned From Practicing Near OhioHealth Practice
Seven cardiologists who operated an OhioHealth practice in Springfield before leaving to work for competitor Ohio State University's Wexner Medical Center have been banned from practicing medicine in Clark County through October 2013. OhioHealth sued Heart Specialists of Ohio, the cardiologists' independent practice, in November 2011 after the physicians announced their plans to join OSU. The physicians, however, had signed contracts with OhioHealth that prevented them from competing with the system during the life of the agreement plus one year after.

9. Patients Claim Texas' Harris County Hospital District Denied Them Care
Texas' Harris County Hospital District is facing allegations that it withheld services from indigent patients and charged co-payments for medical services and prescriptions before evaluating a patient's ability to pay. The lawsuit was filed by lawyers representing five plaintiffs. All five claim that, within the past two years, they were denied treatment at county health centers and pharmacies, but not emergency departments, due to their inability to pay.

10. Emory Healthcare Faces Class-Action Suit Over Data Breach
Atlanta-based Emory Healthcare is facing a class-action lawsuit over a data breach that occurred in April, when the system lost 10 discs containing personal information for roughly 315,000 patients. The recently-filed class-action suit could cost the system more than $200 million, as it seeks $1,000 for each person affected. At least 200,000 patients are expected to become members of the class.

11. Carolinas HealthCare Settles With Mecklenburg County
Charlotte, N.C.-based Carolinas HealthCare System has reached an out-of-court settlement with Mecklenburg County in North Carolina, resolving a lawsuit the system filed in July when Carolinas HealthCare sued the county, alleging a breach of contract related to the county's decision to cut about $16 million in funding that went toward indigent care.

12. Children's Hospital Colorado to Pay $95K Over Alleged Hiring Discrimination
Children's Hospital of Colorado in Aurora will pay $95,000 to settle allegations it discriminated against a job applicant with fibromyalgia after rescinding the her offer following a pre-employment health screening. The suit, filed by the U.S. Equal Employment Opportunity Commission on the applicant's behalf, alleged the hospital violated the Americans with Disabilities Act by withdrawing the job offer.

13. Main Line Health in Pennsylvania Agrees to $1M Settlement Over Medicare Billing
Bryn Mawr, Pa.-based Main Line Health has agreed to a $1.03 million settlement, resolving allegations that the four-hospital system submitted improper claims to Medicare. The alleged activity took place between Jan. 1, 2004, and February 28, 2011, when the system allegedly submitted claims for evaluation and management services that were not applicable for payment.

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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