Legal News

Stories about physicians and other healthcare professionals involved in lawsuits—as either a plaintiff or a defendant—or accused of breaking the law. Various legal updates or unusual stories in the news may land here.

Mental health scammer buys gold-plated Cybertruck with $17M stolen from Tricare
The shiny Tesla Cybertruck cost $100,000. Its owner, Kevin Curry, 64, was convicted by a federal jury for his role in orchestrating a kickback scheme to defraud the military healthcare program. He awaits sentencing.
Lawsuit from Medicaid enrollees, provider advocacy groups challenges ‘Big, Beautiful’ work requirements
Five beneficiaries of the safety-net healthcare program have sued with the support of the National Health Law Program. They are joined by prestigious industry lobbies, including the American Academy of Pediatrics.
Patients of Luminis Health file class action lawsuit following August cyberattack
Plaintiffs allege Anne Arundel Medical Center in Maryland, the target of the data breach, had a server containing unencrypted patient data that hackers were able to access during the breach. The hospital and its parent health system are still recovering from the incident.
Physician left to pay hospital’s $313K legal tab after lawsuit over peer review process fizzles
In a complaint, a California doctor accused his former employer and colleagues of making false statements to damage his reputation. The hospital argued, successfully, that the internist failed to exhaust internal dispute resolution procedures that could have stopped him from losing income.
Federal judge declines to intervene in Cigna’s refusal to pay $3M No Surprises Act award
The judge did not rule that Cigna was justified in refusing to pay but did agree that, under provisions of the NSA, federal courts have no right to compel payments.

State sues AI company after bot impersonates doctor

The digital entity gave at least one end-user a phony medical-license number. Unfortunately for the chatbot, that end-user was a state investigator.

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Hospitals sue Anthem over policy prohibiting use of out-of-network radiologists

Anthem defended the policy in response to the lawsuit, contending patients shouldn’t have to worry about surprise medical bills when visiting in-network hospitals.

Maggot therapy? Wrongful termination lawsuit claims nursing home had a severe sanitation problem

Boca Raton Rehabilitation Center called claims made in the lawsuit by a former employee, Nuella Joseph, “unsubstantiated.” Joseph, a nurse, said the facility has a cleanliness problem that led to bug infestations in resident rooms.

DOJ unveils West Coast ‘Strike Force’ as new tactic used to tackle healthcare fraud

Federal authorities said the shift to regional “Strike Force” models has proven successful, with 6,200 defendants prosecuted nationwide. The DOJ said this latest unit will take a special interest in Northern California.

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Radiologists among physician specialists facing higher risk of being sued, AMA says

About 38% of rads surveyed said they had defended against at least one lawsuit, with such specialists at a higher risk than others in internal medicine.

6 pointers to make sure the hospital legal team is appropriately engaged in AI governance, oversight

Legal and compliance teams have to serve as sentinels sizing up potential legal exposure points without turning into needlers who only slow down clinical innovation.

Nonprofit physician support program faces lawsuit from two docs who say it irreparably damaged their careers

Washington Physicians Health Program (WPHP), a contractor with the state health department, is accused of trapping two physicians into mental health treatment as a condition of maintaining their medical residency jobs. Plaintiffs in the lawsuit are seeking class action status.

Michigan has become the 20th state to opt out from federal regulations that require physician supervision of certified registered nurse anesthetists (CRNAs). The move was made to ensure access to value-based, high-quality care across the state, but it is being opposed by the Michigan Society of Anesthesiologists (MSA) and several other physician groups. Image from the American Association of Nurse Anesthesiology (AANA)

FTC settles antitrust lawsuit against private equity-backed anesthesiology chain

Federal regulators alleged that U.S. Anesthesia Partners—a portfolio company of Welsh, Carson, Anderson & Stowes—engaged in a “roll-up scheme” in Texas that effectively eliminated the competition. The company denies the allegations, but has agreed to undisclosed terms that would see the lawsuit resolved.

Legal News

Mental health scammer buys gold-plated Cybertruck with $17M stolen from Tricare

Lawsuit from Medicaid enrollees, provider advocacy groups challenges ‘Big, Beautiful’ work requirements

Patients of Luminis Health file class action lawsuit following August cyberattack

Physician left to pay hospital’s $313K legal tab after lawsuit over peer review process fizzles

Federal judge declines to intervene in Cigna’s refusal to pay $3M No Surprises Act award