Category: Legal & Regulatory Issues

6 recent hospital lawsuits, settlements

From a jury awarding $261 million to a family that sued a Johns Hopkins hospital in a case made famous by a Netflix documentary, to Rady Children’s facing a lawsuit alleging it secretly recorded a patient and her family, here are six hospital lawsuits,…

Tower Health appeals Pottstown Hospital purchase ruling

West Reading, Pa.-based Tower Health purchased Pottstown (Pa.) Hospital in 2017 from Franklin, Tenn.-based Community Health Systems but remains in dispute with the original owner over the alleged condition of the facility at the time of the sale, accor…

Iowa hospital settles with former CEO for $800K, alleges lack of transparency

Anthony Coleman, DHA, recently resigned from his role as CEO of Des Moines, Iowa-based Broadlawns Medical Center. He had already accepted another position before signing an $800,000 settlement agreement with Broadlawns — but the hospital says it was un…

Health systems sue over 340B policy reversal

A group of health systems from across the country is seeking to block the Health Resources and Services Administration from reinstating a registration policy for offsite clinics of 340B-eligible hospitals they allege will cost billions if left unchecke…

Ex-owner of shuttered nursing school says state lacked 'reasonable basis' for shutdown

Mark Scheinberg, a past owner of for-profit Stone Academy, the shuttered Connecticut nursing school — and one of the defendants in a current lawsuit against it — responded to a complaint arguing that despite findings of noncompliance, the state had “no…

Trustee floored by attorneys fees in Mercy Iowa City sale

Attorneys  fees totaling almost $1 million, which will be borne by the bankrupt hospital, “shock the conscience” in the sale of Mercy Iowa City hospital, a bankruptcy trustee said, according to a Nov. 9 report from The Gazette.

Prospect Medical faces scrutiny over lack of funding to Rhode Island hospitals

Los Angeles-based Prospect Medical Holdings has been issued immediate compliance orders for two hospitals it owns and operates in Rhode Island as vendors remain unpaid and patient surgeries are subsequently canceled.

Investigation into alleged improper billing at Providence still open a year later

An Oregon Department of Justice investigation into alleged improper billing by the state’s largest hospital operator remains open more than a year later, according to a Nov. 9 The Lund Report article.

Former Optum employee to pay $13M for role in fraud scheme

A former Optum employee will pay $13 million in restitution for his role in a multimillion dollar fraud scheme. 

Man killed by police outside North Carolina hospital

A North Carolina man was shot outside a hospital after telling staff members he planned to harm himself and was seen pocketing a gun, ABC affiliate WSOC reported Nov. 8.