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A Liberty Mutual Insurance subsidiary is asking a federal court to absolve it of responsibility for part of a multi-million-dollar settlement against one of the country’s largest emergency medicine providers, arguing that fraud is not covered by the E&O policy and the health company did not provide proper notice of the settlement.
It’s the latest legal skirmish in several cases against Knoxville, Tennessee-based TeamHealth, a major provider of outsourced emergency room services around the U.S. Whistleblowers have alleged that the company overbilled for emergency room services and engaged in other fraudulent actions. TeamHealth has paid millions to settle some of the claims, but has denied wrongdoing, according to news reports and court filings.
In 2016, TeamHealth employees in Texas filed a whistleblower lawsuit against the firm, detailing how TeamHealth allegedly ordered coders for years to pad ER charges. That prompted health insurers, including Medicare, to audit their payments to TeamHealth, according to the complaint and a report in the Tennessee Lookout news outlet.
On June 14, 2021, TeamHealth reached an agreement with the Centers for Medicare and Medicaid Services and the Texas whistleblowers to settle the case for $42 million, $17 million of which went to the whistleblowers and their attorneys. TeamHealth then asked its insurers, AIG and Ironshore, to help cover the cost.
TeamHealth held a $10 million limited...
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