ASCs win $4M settlement for Horizon underpayments — 5 insights

A federal court awarded 183 surgery centers a $4 million settlement in a class action lawsuit against Horizon Blue Cross Blue Shield of New Jersey.

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Five insights:

1. The class action alleged Horizon underpaid surgery centers for medical claims, in violation of the Employee Retirement Income Security Act.

2. In 2008, Horizon identified and nixed flawed methodology responsible for low reimbursements. However, Horizon denied the allegations set forth in the lawsuit.

3. The parties settled the dispute to avoid the cost of a trial.

4. Led by Barbara Edwards of Succasunna, N.J.-Roxbury Surgical Center, the class action may apply to any licensed ASC in New Jersey that provided out-of-network services to any Horizon member from Oct. 1, 2004, through Dec. 31, 2014.

5. Three of the class members opted out of their $4,545.61 portion of the settlement: Woodland Park, N.J.-based McBride Surgical Center, Woodland Park-based Gastroenterology Diagnostics of Northern New Jersey and Newark, N.J.-based Premier Surgical Pavilion. The final approval order and judgement did not elaborate on their reasons for opting out.

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At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Register to Attend Webinar

Is ambulatory care healthcare’s big margin engine? 4 leaders weigh in

Wednesday, July 29
1:00 PM - 2:00 PM CDT

Presenters: Joe Ganley, athenahealthJeffrey Flynn, CASC, Gramercy Surgery CenterBryan Tsao, Access Center, Loma Linda University HealthJason Zepeda, Northridge Hospital Medical Center, CommonSpirit HealthGreg DeConciliis, PA-C, CASC, Boston Out­Patient Surgical Suites

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