22 recent healthcare industry lawsuits, settlements

From a Supreme Court decision allowing site-neutral payment cuts to proceed, to Cleveland Clinic's Akron (Ohio) General Health System agreeing to a $21 million settlement in a False Claims Act case, here are the latest healthcare industry lawsuits and settlements making headlines.

1. St. Jude to pay $27M to settle allegations it sold defective heart devices
St. Jude Medical will pay $27 million to settle false claims allegations that it knowingly sold defective heart devices that were later implanted into thousands of patients insured through Medicare and Medicaid, the Department of Justice said July 8. 

2. Iowa insurer not required to cover COVID-19 losses, court rules
A federal appellate court ruled in favor of Cincinnati Insurance Co. on July 2, finding that the insurer did not have to cover losses stemming from COVID-19 restrictions that an Iowa dental clinic faced.

3. Ohio health system to pay $21M to resolve false claims allegations
Akron (Ohio) General Health System, acquired by Cleveland Clinic in 2015, will pay $21.25 million to resolve allegations that it violated the False Claims Act, the U.S. Justice Department said July 2. 

4. US government to pay $7M to settle 8 sexual abuse claims at VA hospital 
The federal government has agreed to a nearly $7 million settlement related to eight sexual abuse cases stemming from a Kansas Veterans Affairs hospital.

5. US Supreme Court to hear cases on 340B cuts, DSH payment calculation
The U.S. Supreme Court will take up two key healthcare cases, one that challenges cuts to the 340B Drug Discount Program and one that challenges the calculation used to determine Medicare payments to providers, the highest court said July 2.

6. Healthcare workers sue Amazon for allegedly recording PHI: 5 things to know
Four healthcare workers have filed a class-action lawsuit against Amazon, alleging that their Alexa devices recorded their HIPAA-protected conversations.

7. US Supreme Court to tackle Florida Medicaid case
The U.S. Supreme Court said July 2 it will take on a legal dispute regarding how much money Florida's Medicaid program can recoup after a settlement stemming from a 2008 accident.

8. 2 Delaware families sue Nemours Children's Hospital, allege abuse claims were racially motivated
Two Black families have filed lawsuits against Wilmington, Del.-based Nemours Children's Hospital, claiming the system reported false claims of child abuse after the parents complained about the care their children received.

9. FTC sues online PPE seller, alleges it broke federal laws
The Federal Trade Commission filed a complaint June 30 against an online marketer for allegedly falsely promising it could quickly deliver face masks and other personal protective equipment, then later failing to deliver customer orders. It also is accused of not offering cancellations and refunds. 

10. Kroger to pay $5M to settle Accellion breach after 1.4 million pharmacy patients exposed
Kroger has agreed to pay $5 million to settle claims related to the data breach on file transfer vendor Accellion, according to June 30 California federal court documents.

11. Cigna gets win in New Jersey COVID-19 payment lawsuit 
A New Jersey judge dismissed a lawsuit June 30 alleging that Cigna refused coverage for a lab's COVID-19 services.  

12. Alaska Medicaid to cover gender-affirming care after lawsuit settlement
A lawsuit settlement over hormone treatment coverage means Alaska Medicaid cannot deny gender-affirming care.

13. Judge dismisses privacy claim in BJC HealthCare phishing attack lawsuit
While BJC HealthCare must face most of the claims from a class action tied to an email data breach from last year, an Illinois federal judge tossed out an invasion of privacy claim made by the plaintiffs.

14. California hospital beats suit over ER fee nondisclosure
A California hospital was properly dismissed from a lawsuit alleging it violated state consumer protection laws by failing to disclose emergency room visit fees before treatment, a state appellate court ruled June 29.

15. Oncologist sues Health First over firing
An oncologist fired by Health First in June is disputing the circumstances around his termination in a lawsuit against the Rockledge, Fla.-based health system.

16. UnitedHealthcare faces class-action lawsuit over breast reconstructive surgery coverage
UnitedHealthcare is the target of a class-action lawsuit over its policies, which members claim make it difficult for them to receive deep inferior epigastric perforator flap breast reconstruction surgery. 

17. Connecticut physician ordered to pay $15M in billing fraud case
A Connecticut primary care physician was ordered to pay nearly $15 million over allegations of an illegal billing scheme, the state's attorney general said June 28.

18. Supreme Court upholds site-neutral pay cuts
The U.S. Supreme Court on June 28 declined to hear an appeal challenging HHS' site-neutral payment policy, allowing reimbursement cuts to move forward.

19. Judge says Health Plan of West Virginia must comply with ACA's anti-discrimination provision in transgender lawsuit
A federal judge ruled June 28 TheHealth Plan of West Virginia must comply with an ACA provision that prohibits sex discrimination against transgender patients.

20. Case to expand Missouri Medicaid coverage moves to state Supreme Court
After being struck down by a circuit court judge, a Missouri court case over expanding Medicaid coverage to nearly 275,000 people is heading to the state Supreme Court.

21. Iowa judge rules surgeon convicted of tax evasion can't bill Medicare
An Iowa surgeon was denied reenrollment as a licensed Medicare provider due to a series of felony convictions tied to tax evasion.

22. Kaiser, Molina, HealthNet accused of running 'ghost networks' in California
San Diego's city attorney sued three health insurers June 25, accusing Kaiser Permanente, Molina Healthcare and HealthNet of misleading members with inaccurate provider directories. 

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