The lawsuit, filed by Lawrence Peacock, MD, alleges that Prospect did not discharge psychiatric patients who no longer required hospitalization in order to continue collecting insurance revenue, including payments from Medicare and Medicaid.
Nina Kruse, spokeswoman for Eastern Connecticut Health Network, which is owned by Prospect, told Becker’s that the organization does not comment on ongoing litigation.
Prospect is also involved in another lawsuit with Yale New Haven Health over the proposed $435 million sale of three regional hospitals.
Dr. Peacock filed the lawsuit in 2020 and was ultimately terminated from his position as medical director and vice chairman of MMH’s psychiatric department. A trial is scheduled for next month with jury selection currently underway, according to the report.
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