- Summary
- Law firms
- UnitedHealthcare accused of drastic underpayments to emergency providers
- Separate lawsuit accusing TeamHealth of upcoding remains pending
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(Reuters) - A jury in Nevada state court has found that UnitedHealthcare Inc underpaid affiliates of physician outsourcing company TeamHealth Inc, awarding TeamHealth $2.65 million with additional punitive damages to be determined.
The verdict on Monday came after a trial in which Tennessee-based TeamHealth accused the Minnesota-based insurance giant of "drastic" underpayments for emergency room services provided to UnitedHealthcare beneficiaries, reimbursing as little as 20% of what they billed.
TeamHealth said UnitedHealthcare had justified the low payments as stemming from its so-called "Shared Savings" program, which the insurer described as a way to protect patients from surprise bills from out-of-network providers who treat them in emergency settings, a practice known as balance billing.
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TeamHealth, however, has said that while its Nevada affiliates were not in-network with UnitedHealthcare, they never engaged in balance billing.
TeamHealth chief executive officer Leif Murphy said in a statement that the company was "thrilled by the jury's decision to hold UnitedHealthcare accountable."
A UnitedHealthcare spokesperson said in a statement that the company was reviewing the implications of the verdict.
The jury is expected to reconvene on Dec. 7 to decide punitive damages.
Separately, UnitedHealthcare in October sued TeamHealth in Knoxville, Tennessee federal court, accusing it of billing for more expensive care than it actually provided – a practice known as upcoding – to the tune of more than $100 million. TeamHealth has not formally responded to that lawsuit, though Murphy in a statement at the time called it "frivolous."
The case is Fremont Emergency Services (Mandavia) v. UnitedHealth Group Inc, Nevada 8th Judicial District Court, No. A-19-792978-B.
For TeamHealth: John Zavitsanos of Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing
For UnitedHealthcare: Lee Blalack of O'Melveny & Myers
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Brendan Pierson reports on product liability litigation and on all areas of health care law. He can be reached at brendan.pierson@thomsonreuters.com.