The Connecticut Hospital Association filed a lawsuit against Prospect Medical Holdings May 14, claiming the 16-hospital system owes $1.75 million in unpaid membership dues and service fees, according to the Hartford Business Journal.
CHA accused Los Angeles-based Prospect of breach of contract and unjust enrichment.
Prospect declined comment to HBJ on pending litigation. The lawsuit alleges Prospect failed to pay CHA membership dues for three Connecticut-based hospitals beginning in September 2022. According to the suit, the health system has $1.38 million in unpaid dues.
CHA also claims Prospect owes fees for "specialized services" including a data collection and analyzing service.
CHA is seeking compensatory and monetary damages as well as coverage for costs and attorney fees, according to the report, and filed a prejudgement remedy application. If the application is approved, CHA could place liens on Prospect's assets.