Category: Legal & Regulatory Issues

Anesthesiologists sue New York hospital for $21M

Montefiore St. Luke’s Cornwall in Newburgh, N.Y., is facing a $21 million lawsuit filed by an anesthesiologist group that claims the hospital breached an exclusive contract to use the group’s physicians for its anesthesia services, the Westfair Busines…

Feds investigating multiple health systems

From Franklin, Tenn.-based Community Health Systems to Norfolk, Va.-based Sentara Health, the Justice Department has been busy looking into multiple health systems and healthcare organizations over the last few months. 

Former Kentucky hospital nurse charged with patient credit card fraud

A nurse previously employed by Baptist Hospital East in Louisville, Ky., was arrested July 1 for allegedly using patients’ stolen credit cards, according to ABC affiliate WHAS.

DOJ looking into Prospect Medical Holdings, court documents reveal

The Justice Department issued a civil investigation demand to Los Angeles-based Prospect Medical Holdings on Nov. 3, according to a June 27 court document filed by Prospect.

Hackensack Meridian sues HHS secretary in wake of Chevron ruling

In the wake of the Supreme Court’s overturning of Chevron deference, Edison, N.J.-based Hackensack Meridian Health filed a lawsuit against HHS Secretary Xaiver Becerra challenging what the system calls the secretary’s “irrational and unlawful interpret…

New hospital price transparency rule goes into effect

The new CMS price transparency rule went into effect July 1, requiring hospitals to report price information in a standard machine-readable format, according to the American Hospital Association.

Drug researcher charged in $16M case

A lead researcher for an Alzheimer’s drug candidate was indicted June 27 in a case alleging he fabricated data, according to the Justice Department.  

Jefferson Health hospital cited for aggressive handling of patient

In May, surveyors issued Jefferson Health’s Abington (Pa.) Hospital an immediate jeopardy warning after determining a security guard used excessive force against a psychiatric patient who had not displayed aggressive behavior, according to an inspectio…

Outcome Health CEO, CFO sentenced for roles in $1B fraud scheme

Rishi Shah, co-founder and former CEO of healthcare technology startup Outcome Health, has been sentenced to seven and a half years in prison for his role in a scheme involving about $1 billion in fraudulently obtained funds, the Chicago Tribune report…

Optum to pay $20M to settle improper prescription allegations

OptumRx will pay $20 million to settle allegations it improperly dispensed some opioid medications, the Justice Department said June 27.