UMass Chan legal bills soar to $7.2M due to litigation battle with hospital

University of Massachusetts Chan Medical School's legal expenses have reached $7.2 million due to its ongoing litigation with Worcester-based UMass Memorial Health over a dispute about money, Mass Live reported Aug. 24. 

According to the publication, the Worcester-based medical school says UMass Memorial Health owes it $40 million under a "revenue-sharing agreement," in which the medical school claims it was supposed to receive a $40 million portion of revenue from the sale of specialty pharmacy company Shields Health Solutions. 

Back in 2019, UMass Memorial sold its stake in Shields Health Solutions for $263 million. 

UMass Memorial has called the medical school's claims "baseless" and has been fighting the allegations. 

The matter has since gone to arbitration, and according to two sources involved in the dispute, an arbitrator's preliminary findings show the medical school could end up receiving far less than the $40 million it seeks.

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