Prospect Medical, parent company of Upland, Pa.-based Crozer Health, is suing HHS, CMS and others alleging they violated an automatic stay order after the company’s bankruptcy was filed in January, Philadelphia Business Journal reported Aug. 13.
What happened?
- The July 11 complaint seeks at least $1.5 million in reimbursement for care provided to Medicare and Medicaid patients at five Crozer Health ASCs and imaging centers.
- Prospect claims it expected to receive Medicare reimbursement for part of this care, based on ongoing settlement talks with CMS.
- However, the lawsuit states that on July 1, CMS retroactively terminated Medicare enrollment effective June 21. Prospect alleges this move suggested settlement discussions could only continue if it paid more than $8 million owed to CMS prior to the bankruptcy, a violation of bankruptcy protections.
- The suit names HHS Secretary Robert F. Kennedy Jr. and CMS administrators, including Mehmet Oz, MD, as defendants.
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