20 Recent Investigations, Lawsuits and Settlements Involving Hospitals

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

1. St. James Healthcare to Settle Anti-Kickback, Stark Law Allegations with $3.9M
St. James Healthcare in Butte, Mont., and parent company Sisters of Charity of Leavenworth Health System in Denver, agreed to a settlement of $3.85 million to resolve allegations of illegally providing financial benefits to physicians who made referrals to the hospital.

2. UPMC, Highmark Drop Lawsuits
Pittsburgh-based healthcare giants UPMC and Highmark followed the orders of a federal judge and dropped their respective antitrust lawsuits, bringing four years of litigation to a close.

3. Whistle-blower Suit Against HMA Alleges Payments for Physician Referrals
One of the recently disclosed qui tam lawsuits against Naples, Fla.-based Health Management Associates was filed by the former CEO of Charlotte Regional Medical Center in Punta Gorda, Fla.

4. 2 Sacred Heart Executives Cooperated in Federal Investigation
Prosecutors say two executives at Sacred Heart Hospital in Chicago cooperated with a federal investigation into an alleged kickback scheme that resulted in the arrest of the hospital's CEO, CFO and four physicians.

5. NorthShore University HealthSystem Faces Class-Action Antitrust Suit
A lawsuit accusing Evanston, Ill.-based NorthShore University HealthSystem of anticompetitive pricing was granted class-action status, making it the first private antitrust class-action related to a hospital merger.

6. HMA Named in 4 False Claims Actions
Naples, Fla.-based Health Management Associates disclosed it has been named in four qui tam lawsuits filed by private individuals. 

7. UPMC, Highmark Ordered to Drop Lawsuits
A federal judge ordered both UPMC and Highmark to drop their respective lawsuits and abide by a 2012 mediated agreement.

8. Children's Hospital and Research Center Faces EEOC Suit for Firing Employee With Cancer
Children's Hospital and Research Center in Oakland, Calif., is facing a lawsuit from the U.S. Equal Employment Opportunity Commission alleging the hospital's termination of an office associate with breast cancer violated federal laws.

9. Tennessee Pediatric Group Settles FCA Allegations With $540k
A pediatric practice based in Memphis, Tenn., agreed to a settlement of $540,000 to resolve allegations the group overbilled TennCare, the state's Medicaid managed care program.

10. St. Elizabeth Hospital Fined $10k for Improper Hazardous Waste Storage
St. Elizabeth Hospital in Belleville, Ill., was fined $10,000 by the state for alleged improper hazardous waste storage and other violations.

11. Saint Mary's Regional Medical Center Sues Renown Health Over Business Practices
Saint Mary's Regional Medical Center in Reno, Nev., filed a lawsuit against its Reno competitor Renown Health, accusing Renown of employing unfair business tactics to cripple Saint Mary's cardiology program.

12. Baystate Nurses File Suit to Recover Unpaid Wages
Nurses from Springfield, Mass.-based Baystate Visiting Nurse Association and Hospice filed a suit against Springfield-based Baystate Health to recover lost wages and overtime that have been allegedly withheld.

13. Antitrust Settlement Allows Faxton-St. Luke's Healthcare, St. Elizabeth Medical Center to Affiliate
Faxton-St. Luke's Healthcare and St. Elizabeth Medical Center, both in Utica, N.Y., settled antitrust concerns with the state of New York, allowing the two financially troubled hospitals to move forward with a proposed affiliation.

14. Former CFO Sues Roseland Community Hospital Over Missing Pay
The former interim CFO of Roseland Community Hospital in Chicago filed a lawsuit claiming the embattled hospital owes him almost $130,000 in unpaid salary.

15. Lawsuit Accuses OSF Healthcare of Discriminating Against Disabled Patients
Peoria, Ill.-based OSF Healthcare is facing a lawsuit alleging several hospitals within the system have discriminated against patients with disabilities.

16. Allegations Against Southwest Regional Medical Center Cast in Doubt
An investigation by the Pennsylvania Department of Health helped Southwest Regional Medical Center in Waynesburg, Pa., disprove allegations accusing the hospital of knowingly providing substandard care. 

17. Judge Upholds Sale of Christ Hospital to CarePoint Health
A federal judge dismissed Ontario, Calif.-based Prime Healthcare Service's suit attempting to block the sale of the bankrupt Christ Hospital in Jersey City, N.J. to CarePoint Health in Hudson City, N.J.

18. CaroMont Loses Appeal Over Opening of Rival Endoscopy Center
Gastonia, N.C.-based CaroMont Health lost its appeal in a suit it filed to prevent the opening of a competing endoscopy center in Gaston County, N.C.

19. Court Puts University of New Mexico Hospital's Flu Shot Policy on Hold
A mandatory flu vaccine policy at the University of New Mexico Hospital in Albuquerque was put on hold by a district court.

20. UPMC Tax Challenge Hearing Set for January
Legal arguments related to the city of Pittsburgh's challenge to UPMC's tax-exemption are scheduled for Jan. 8.

More Articles on Healthcare Legal Issues:

UnitedHealthcare Sued Over Physician Contract Terminations in New York
Stolen Laptop Leads to 20-Year FTC Oversight for Accretive Health
St. James Healthcare to Settle Anti-Kickback, Stark Law Allegations with $3.9M

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