14 Recent Lawsuits Involving Hospitals

The following hospital lawsuits were reported within the past month, beginning with the most recent.

1. Dameron Hospital Association in California Sued for Discrimination
Dameron Hospital Association in Stockton, Calif., which operates Dameron Hospital, and its COO Nicholas Arismendi have been sued for racial discrimination and retaliation by an African American physician executive.

2. Monongalia Health System, Morgantown Health Settle Fraud Allegations With $2.25M
Monongalia Health System in Morgantown, W.Va., and Morgantown Health Care agreed to pay $2.25 million to the United States to settle fraud allegations. The government alleged that MonPointe Continuing Care Center, formerly operated by Morgantown Health Care and Monongalia Health System, violated the False Claims Act by submitting fraudulent claims to Medicare and Medicaid from Sept. 1, 2006, to May 31, 2007

3. Trinity Health Systems to Pay $218K Over Failure to Provide Interpreters for the Deaf
Trinity Health Systems in Fort Dodge, Iowa, has agreed to pay $218,000 over an alleged violation of the Americans with Disabilities Act by failing to provide interpretation services for a deaf patient. Of the settlement, $198,000 will be paid to the aggrieved patients and $20,000 will be paid as a civil penalty.

4. Universal Health Services Agrees to Pay $6.85M to Settle False Claims Allegations
King of Prussia, Pa.-based Universal Health Services has agreed to pay $6.85 million to settle charges that it provided substandard psychiatric services to adolescent patients in Virginia. The services in question took place at Marion (Va.) Youth Center, a residential facility. The Department of Justice also alleged that the facility falsified patient records and submitted false claims to Medicaid.

5. Appeals Court Reverses $45M Judgment Against Tuomey Healthcare Over Alleged Stark Violations
A three-judge panel from the Fourth Circuit Court of Appeals reversed a $45 million ruling against Tuomey Healthcare System in Sumter, S.C., over alleged violations of Stark Law. The appeal stems from April 2010, when jurors for the District Court of South Carolina found the system guilty of violating the Stark Act from through employment agreements with physicians for its Outpatient Surgery Center.

6. Bergen Regional Medical Center in NJ Allegedly Defrauded County With Elevator Repairs
The private operator of Bergen Regional Medical Center in Paramus, N.J., allegedly defrauded a county agency through a scheme with two elevator repair companies. The Bergen County Improvement Authority claims the hospital's management company, Bergen Regional Medical Center LP, conspired with two elevator repair companies to bilk the county of "at least hundreds of thousands of dollars," according to news reports.

7. Good Samaritan Hospital in Baltimore Settles False Claims Allegations
Good Samaritan Hospital in Baltimore agreed to pay roughly $800,000 to settle allegations that it submitted false claims to federal health programs for four years. Federal officials claimed that from January 2005 to December 2008, the hospital listed some admitted patients as suffering from malnutrition and marked it as a secondary condition to inflate reimbursement.

8. Tenet's Suit Against Community Health Systems Dismissed
The lawsuit Dallas-based Tenet Healthcare filed against Brentwood, Tenn.-based Community Health Systems — seeking damages for the cost of CHS' attempted takeover last year — was dismissed by a federal judge with prejudice.

9. Surgeon Sues University of Missouri for Alleged Breach of Contract
An orthopedic surgeon sued the University of Missouri in Columbia, his former employer, for $15 million in punitive damages after it allegedly breached contracts and damaged his practice.

10. Suit Alleging Improper Billing at Benefis Health in Montana Gets Class-Action Status
A judge granted class-action status to a lawsuit claiming Benefis Health System in Great Falls, Mont., owes patients money that it collected in excess of what health insurance companies were contractually obligated to pay.

11. New Mexico Supreme Court Sides With Lovelace Health in Physician Peer Review Lawsuit
The New Mexico Supreme Court ruled in favor of Albuquerque-based Lovelace Health System and its operator, Nashville, Tenn.-based Ardent Health Services, after a physician alleged the organizations conducted an unreasonable peer review process that led to the suspension of his privileges.

12. Judge: County Has No Obligation to Fund Carolinas HealthCare's Charity Care
A judge has ruled that Mecklenburg County in North Carolina has no obligation to pay at least $17.8 million per year to Charlotte, N.C.-based Carolinas HealthCare System to subsidize charity care. The hospital system filed suit against Mecklenburg last July, days after the county board agreed to terminate a $40 million healthcare services agreement with the system, effective June 2013.

13. CHS, West Tennessee Healthcare Settle Long-Term Antitrust Dispute
Brentwood, Tenn.-based Community Health Systems and Jackson, Tenn.-based West Tennessee Healthcare have reached an agreement over a long-term antitrust dispute. Under the settlement, Jackson-Madison County General will not require that it be the sole provider in Tennessee's Madison County as a condition of entering network agreements with insurers. Existing contracts are unaffected, but new contracts issued by Jackson-Madison will no longer prohibit insurers from contracting with CHS' Regional Hospital.

14. Beth Israel Medical Center in NY to Pay $13M for "Turbocharging"
New York-based Beth Israel Medical Center has agreed to pay the U.S. government $13 million after it admitted it practiced "turbocharging" in the late 1990s and early 2000s to receive higher Medicare payments. Turbocharging is when a hospital or provider fraudulently increases billed charges for providing care that are far higher than the actual costs associated with that care.

More Articles on Hospital Lawsuits:

5 Legal Issues Surrounding Electronic Medical Records
15 Biggest Hospital False Claims and Anti-Kickback Stories of 2011
3 Core Legal Issues for Hospital Marketing Programs


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