ASCs continue to play a growing role in outpatient care delivery, but as the sector expands, so do legal and compliance risks.
A recent wave of ASC lawsuits highlights three recurring themes:
False claims and billing practices
Billing compliance lawsuits highlight the ongoing focus federal authorities place on outpatient billing practices.
Henghold Surgery Center (Fla.) and owner William Henghold, MD, agreed to pay $847,394 to resolve allegations of false claims. The ASC, operated by Forefront Dermatology before closing in 2023, allegedly misclassified wound repairs following Mohs micrographic surgery, coding simple linear repairs as more complex flap repairs and overstating flap sizes to obtain higher reimbursements, according to the Justice Department.
Labor and employment disputes
Workforce dynamics are another source of legal exposure for ASCs, particularly around wage and benefit practices.
Aspen Surgery Center (Calif.) faces a class-action lawsuit alleging violations of California’s Labor Code. The suit claims the ASC failed to pay employees for off-the-clock work, did not provide required meal and rest breaks, issued inaccurate wage statements, and failed to reimburse business expenses.
In a separate case, former United Surgical Partners International employee Dara Janosky filed a class-action suit alleging the company’s tobacco-use surcharge on health insurance premiums violated the Employee Retirement Income Security Act. She argues the surcharge discriminates based on health status, fails to meet federal wellness program standards, and prioritizes profit over employee health.
Drug mismanagement and diversion
Medication safety and controlled substance management continue to be critical compliance areas for ASCs, with lapses often leading to criminal charges.
Eugene-based Oregon Eye Surgery Center nurse Sara Lay, RN, was sentenced to one year of federal supervision for stealing nearly 300 vials of fentanyl. An internal review found altered anesthesia logs with entries “whited out” to conceal underreporting.
At North Platte Surgery Center (Neb.), former nurse Patrick Campbell admitted to stealing fentanyl and propofol. He was charged with acquiring controlled substances by fraud, faces up to four years in prison, and a $250,000 fine.
