Cases & Deals

Vanguard Health Systems secures dismissal in suit alleging injury and improper billing of Medicare patients

Clients Vanguard Health Systems, Incorporated

Jones Day secured dismissal for Vanguard Health Systems sued under the Medicare Secondary Payer Statute's private cause of action by consumer activist Erin Brockovich and professional guardian Douglas Stalley. The suit alleged that our clients injured Medicare patients during their hospital stays and improperly billed Medicare for treatment of these injuries. Plaintiffs claim that such practices have cost Medicare billions of dollars in overpayments, and plaintiffs seek double damages plus fees in these lawsuits. More than 50 identical suits were filed in the names of these plaintiffs (as putative qui tam relators) in state and federal courts in Arkansas, California, Florida, Pennsylvania and Tennessee.

On behalf of a joint defense group comprised of counsel for defendants in similar suits, Jones Day successfully presented the lead argument at hearing before Judge Carter on motions to dismiss pending in 31 suits filed in or removed to the Central District of California. We argued a similar successful motion to dismiss on behalf of Sumner Regional in the Middle District of Tennessee before Judge Echols. We obtained dismissal for our clients of the other lawsuits in which we were involved on the papers.

Brockovich v. Vanguard Health Systems, Inc.; Brockovich v. HCA, Inc.; Brockovich v. Loma Linda University, (U.S.D.C., C.D. Cal.),

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