A New York federal judge has dismissed a complaint filed by four ASCs against 1199 Service Employees International Union National Benefit Fund.
The ASCs were Manalapan Surgery Center, New Horizon Surgical Center, Surgicore of Jersey City and Surgicore Surgical Center, according to a March 31 release published on JDSupra by law firm ArentFox Schiff.
The four ASCs alleged in the breach-of-contract lawsuit that they were out-of-network providers providing ad hoc services through an agreement with SEIU.
Before performing procedures, the ASCs alleged that SEIU assured them that the services were authorized and covered. Despite the confirmation, the ASCs allege that they were paid at lower rates than is customary for in-network care.
The ASCs are suing for differences between the amounts billed and the amounts paid, plus damages based on allegations of fraud.
SEIU filed for dismissal based on Employee Retirement Income Security Act preemption and the ASCs’ failure to state a claim.
The court held there was no ERISA preemption and dismissed the plaintiffs’ claims for failure to state a claim.
The court alleged that the ASCs did not provide adequate details about the ad hoc agreement.
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