The following hospital lawsuits, settlements or legal developments were reported within the past month, beginning with the most recent.
1. Catholic Health Services of Long Island Agrees to $2.35M Settlement for Alleged Kickbacks
Catholic Health Services of Long Island, based in Rockville, N.Y., agreed to pay upwards of $2.35 million to federal regulators after one of its hospitals reported questionable financial relationships with some of its physicians.
2. Pacific Health to Pay $16.5M to Settle Kickback Allegations Involving the Homeless
Los Angeles-based Pacific Health agreed to pay $16.5 million to resolve allegations that its subsidiaries paid illegal kickbacks in exchange for patients recruited among homeless populations and then provided allegedly unnecessary care in a scheme to overbill Medicare and Medi-Cal.
3. Memorial Health Care in Tennessee to Pay $1.28M for Alleged Stark Law Violations
Chattanooga, Tenn.-based Memorial Health Care System agreed to pay roughly $1.28 million to settle alleged violations of the False Claims Act and other federal laws. Beginning as early as January 2003, Memorial allegedly entered into financial agreements with certain physicians and practices that provided financial benefits to physicians, allegedly designed to induce referrals to Memorial facilities.
4. FTC Urges Supreme Court to Strike Previous Rulings in Phoebe Putney Case
The Federal Trade Commission submitted its argument to the Supreme Court in its case against Albany, Ga.-based Phoebe Putney Health System, urging the high court to reverse previous rulings. The main issue of the FTC v. Phoebe Putney case is whether states can execute hospital mergers and acquisitions despite FTC scrutiny under state action doctrines that give local government entities power to acquire hospitals.
5. Medical Staff Has No Legal Standing to Sue Hospital, Says Minnesota Judge
A Minnesota court ruled that a physician medical staff is not an independent, legal entity and cannot sue the hospital where it operates. The decision stems from a complaint against Avera Marshall (Minn.) Regional Medical Center, filed by the hospital's chief of staff and chief of staff-elect on behalf of the hospital's medical staff.
6. Employees Sue Truman Medical Center in Kansas City Over Pension Plans
Employees at Truman Medical Center in Kansas City, Mo., sued the hospital for changing their retirement plans and violating a 2011 collective bargaining agreement. Service Employees International Union Healthcare Illinois, Indiana, Missouri, Kansas claims TMC halted its defined benefit pension plans in February and implemented an enhanced defined contribution plan.
7. Radiology Group Sues St. Peter's Hospital in Montana Over Staff Privileges
A radiology group has sued St. Peter's Hospital in Helena, Mont., claiming it abused its "monopoly power" by refusing to let the group practice at the hospital. Montana Interventional and Diagnostic Radiology Specialists in Helena is accusing St. Peter's of unfair restraint of trade and violation of laws that base hospital credentialing on economic relationships.
8. Whistleblower Suit Alleges Florida Adventist Hospitals Overbilled Tens of Millions
A whistleblower lawsuit filed by a former Florida Hospital Orlando employee and staff physician claims seven Adventist Health hospitals in Florida overbilled the government for tens of millions of dollars.
9. Beebe Medical Center's Class Action Settlement Expected to Top $100M
Beebe Medical Center in Lewes, Del., reached a settlement exceeding $100 million to resolve a class action lawsuit filed by patients who received care from a pediatrician who was a pedophile. Financial details are currently confidential, but sources have told news outlets the settlement will be more than $100 million.
10. Judge Dismisses False Claims Suit Against Kernan Hospital in Baltimore
A judge dismissed a false claims lawsuit against Kernan Hospital in Baltimore that alleged the orthopedic and rehabilitation facility systematically overbilled federal health programs for a severe form of malnutrition.
11. Judge Dismisses Urologist's Suit Against Massachusetts General
A judge dismissed a physician's lawsuit against Massachusetts General Hospital in Boston, which alleged the hospital denied the plaintiff's rights to inventions he produced at home. The judge ruled that the intellectual property policy was reasonable and that nothing prohibits the physician from practicing medicine elsewhere.
12. Renown Health to Release its Cardiologists From Non-Compete Agreements
Reno, Nev.-based Renown Health has released its staff of cardiologists from non-compete contract clauses, allowing them to join competing practices as part of a proposed settlement with the Federal Trade Commission. As a result of non-compete clauses in the cardiologists' contracts, the FTC claimed Renown employed 88 percent of cardiologists in the Reno area.
13. Mayo Clinic to Pay $1.26M to Resolve False Billing Allegations
Mayo Clinic agreed to pay $1.26 million to resolve a federal lawsuit claiming it billed the government for surgical pathology services that were never rendered.
3 Core Legal Issues for Hospital Marketing Programs
3 Attorneys Discuss Trends in Hospital Litigation Today
1. Catholic Health Services of Long Island Agrees to $2.35M Settlement for Alleged Kickbacks
Catholic Health Services of Long Island, based in Rockville, N.Y., agreed to pay upwards of $2.35 million to federal regulators after one of its hospitals reported questionable financial relationships with some of its physicians.
2. Pacific Health to Pay $16.5M to Settle Kickback Allegations Involving the Homeless
Los Angeles-based Pacific Health agreed to pay $16.5 million to resolve allegations that its subsidiaries paid illegal kickbacks in exchange for patients recruited among homeless populations and then provided allegedly unnecessary care in a scheme to overbill Medicare and Medi-Cal.
3. Memorial Health Care in Tennessee to Pay $1.28M for Alleged Stark Law Violations
Chattanooga, Tenn.-based Memorial Health Care System agreed to pay roughly $1.28 million to settle alleged violations of the False Claims Act and other federal laws. Beginning as early as January 2003, Memorial allegedly entered into financial agreements with certain physicians and practices that provided financial benefits to physicians, allegedly designed to induce referrals to Memorial facilities.
4. FTC Urges Supreme Court to Strike Previous Rulings in Phoebe Putney Case
The Federal Trade Commission submitted its argument to the Supreme Court in its case against Albany, Ga.-based Phoebe Putney Health System, urging the high court to reverse previous rulings. The main issue of the FTC v. Phoebe Putney case is whether states can execute hospital mergers and acquisitions despite FTC scrutiny under state action doctrines that give local government entities power to acquire hospitals.
5. Medical Staff Has No Legal Standing to Sue Hospital, Says Minnesota Judge
A Minnesota court ruled that a physician medical staff is not an independent, legal entity and cannot sue the hospital where it operates. The decision stems from a complaint against Avera Marshall (Minn.) Regional Medical Center, filed by the hospital's chief of staff and chief of staff-elect on behalf of the hospital's medical staff.
6. Employees Sue Truman Medical Center in Kansas City Over Pension Plans
Employees at Truman Medical Center in Kansas City, Mo., sued the hospital for changing their retirement plans and violating a 2011 collective bargaining agreement. Service Employees International Union Healthcare Illinois, Indiana, Missouri, Kansas claims TMC halted its defined benefit pension plans in February and implemented an enhanced defined contribution plan.
7. Radiology Group Sues St. Peter's Hospital in Montana Over Staff Privileges
A radiology group has sued St. Peter's Hospital in Helena, Mont., claiming it abused its "monopoly power" by refusing to let the group practice at the hospital. Montana Interventional and Diagnostic Radiology Specialists in Helena is accusing St. Peter's of unfair restraint of trade and violation of laws that base hospital credentialing on economic relationships.
8. Whistleblower Suit Alleges Florida Adventist Hospitals Overbilled Tens of Millions
A whistleblower lawsuit filed by a former Florida Hospital Orlando employee and staff physician claims seven Adventist Health hospitals in Florida overbilled the government for tens of millions of dollars.
9. Beebe Medical Center's Class Action Settlement Expected to Top $100M
Beebe Medical Center in Lewes, Del., reached a settlement exceeding $100 million to resolve a class action lawsuit filed by patients who received care from a pediatrician who was a pedophile. Financial details are currently confidential, but sources have told news outlets the settlement will be more than $100 million.
10. Judge Dismisses False Claims Suit Against Kernan Hospital in Baltimore
A judge dismissed a false claims lawsuit against Kernan Hospital in Baltimore that alleged the orthopedic and rehabilitation facility systematically overbilled federal health programs for a severe form of malnutrition.
11. Judge Dismisses Urologist's Suit Against Massachusetts General
A judge dismissed a physician's lawsuit against Massachusetts General Hospital in Boston, which alleged the hospital denied the plaintiff's rights to inventions he produced at home. The judge ruled that the intellectual property policy was reasonable and that nothing prohibits the physician from practicing medicine elsewhere.
12. Renown Health to Release its Cardiologists From Non-Compete Agreements
Reno, Nev.-based Renown Health has released its staff of cardiologists from non-compete contract clauses, allowing them to join competing practices as part of a proposed settlement with the Federal Trade Commission. As a result of non-compete clauses in the cardiologists' contracts, the FTC claimed Renown employed 88 percent of cardiologists in the Reno area.
13. Mayo Clinic to Pay $1.26M to Resolve False Billing Allegations
Mayo Clinic agreed to pay $1.26 million to resolve a federal lawsuit claiming it billed the government for surgical pathology services that were never rendered.
More Articles on Hospitals and Legal Issues:
5 Legal Issues Surrounding Electronic Medical Records3 Core Legal Issues for Hospital Marketing Programs
3 Attorneys Discuss Trends in Hospital Litigation Today