Category: Legal & Regulatory Issues

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.

Nurse candidate sues BJC HealthCare over discrimination claims

A nurse accused St. Louis-based BJC HealthCare of delaying her start date and withdrawing a job offer because she is deaf, according to court documents filed in late October. 

Teen charged in assault of Illinois hospital workers

A teenager is facing charges after police said she hit three employees in Jacksonville (Ill.) Memorial Hospital on Nov. 7, according to a report from the Journal Courier. 

Hospital landlord group faces increasing pressure from lawyers, investors

Lawyers representing investors who may have lost significant money over the way a $375 million deal was presented by Medical Properties Trust are encouraging such investors to submit their losses, according to a Nov. 8 InvestorsObserver report.

Senate committee advances bill that would delay DSH cuts, rein in PBM tactics

The Senate Finance Committee on Nov. 8 voted to advance a healthcare package that would eliminate two years of Medicaid disproportionate share hospital cuts and rein in what Chairman Sen. Ron Wyden of Oregon called “shadowy tactics by pharmacy benefit …