The ruling in the case, Selective Insurance Company v. Hudson East Pain Management, delivers a significant blow to the insurance industries strategy of delaying payment to providers for failure to produce confidential information such as corporate charters, partnership agreements, annual reports, shareholder agreements and lease agreements, Mr. Manigan says.
“This case should stop carriers from going on exceedingly burdensome fishing expeditions which are designed only to sap providers of resources and leverage cheap settlements,” he says.
The court ruled the following:
- Insurance policies’ cooperation provisions do not require that medical providers produce this information.
- The statutory provisions governing PIP disputes do not require that medical providers produce this information
- New Jersey’s public policy of curbing insurance fraud does not, without specific allegations of wrongdoing, require production of this information.
“It’s a good day for healthcare providers in our state,” Mr. Manigan says.
View the ruling in Selective Insurance Company v. Hudson East Pain Management (pdf).