Legal Proceedings
−Removed: From time to time, we receive inquiries or subpoenas from state regulators, state Medicaid Fraud Control units, fiscal intermediaries, the Centers for Medicare & Medicaid Services, the Department of Justice and other government entities regarding various Medicare and Medicaid issues.
−Removed: In addition to the matters discussed below, we are currently responding to subpoenas and administrative demands concerning (a) a civil investigative demand related to call coverage services provided by a cardiology group at one of our Tennessee hospitals and (b) a civil investigative demand related to charges for certain emergency department services at our four New Mexico hospitals.
+Added: From time to time, we receive inquiries or subpoenas from state regulators, state Medicaid Fraud Control units, fiscal intermediaries, CMS, the U.S.
+Added: Department of Justice and other government entities regarding various Medicare and Medicaid issues.
In addition, we are subject to other claims and lawsuits arising in the ordinary course of our business including lawsuits and claims related to billing practices and the administration of charity care policies at our hospitals.
2 unchanged sentences
Settlements of suits involving Medicare and Medicaid issues routinely require both monetary payments as well as corporate integrity agreements.
−Removed: Additionally, qui tam or “whistleblower” actions initiated under the civil False Claims Act may be pending but placed under seal by the court to comply with the False Claims Act’s requirements for filing such suits.
−Removed: In September 2014, the Criminal Division of the United States Department of Justice, or DOJ, announced that all qui tam cases will be shared with their Division to determine if a parallel criminal investigation should be opened.
+Added: Additionally, qui tam or “whistleblower” actions initiated under the civil False Claims Act, or FCA, may be pending but placed under seal by the court to comply with the FCA’s requirements for filing such suits.
+Added: In September 2014, the Criminal Division of the U.S.
+Added: Department of Justice announced that all qui tam cases will be shared with their Division to determine if a parallel criminal investigation should be opened.
The Criminal Division has also frequently stated an intention to pursue corporations in criminal prosecutions.
From time to time, we detect issues of non-compliance with Federal healthcare laws pertaining to claims submission and reimbursement practices and/or financial relationships with physicians.
−Removed: We avail ourselves of various mechanisms to address potential overpayments arising out of these issues, including repayment of claims, rebilling of claims, and participation in voluntary disclosure protocols offered by the Centers for Medicare & Medicaid Services and the Office of the Inspector General.
+Added: We avail ourselves of various mechanisms to address potential overpayments arising out of these issues, including repayment of claims, rebilling of claims, and participation in voluntary disclosure protocols offered by CMS and the Office of Inspector General.
Participating in voluntary repayments and voluntary disclosure protocols can have the potential for significant settlement obligations or even enforcement action.
10 unchanged sentences
That motion is pending.
−Removed: We believe this matter is without merit and will vigorously defend this case.
+Added: We believe this matter is without merit and are vigorously defending this case.
Padilla Derivative Litigation .
13 unchanged sentences
All four cases are stayed by court order until the United States District Court for the Middle District of Tennessee rules on the defendants’ motion to dismiss in the Padilla action.
−Removed: Oui Tam Litigation
+Added: Qui Tam Litigation
ex rel Larry Bomar v.
3 unchanged sentences
The CID sought documentation related to agreements between the hospital and Pinellas County.
−Removed: On June 13, 2019, an additional ten of our affiliated hospitals in Florida received CIDs related to the same subject matter, along with two CIDs addressed to our affiliated management company and the parent company.
+Added: On June 13, 2019, an additional ten of our affiliated hospitals in Florida received CIDs related to the same subject matter, along with two CIDs addressed to our affiliated
+Added: management company and th e Parent C ompany.
We cooperated fully with the investigation.
4 unchanged sentences
The United States has declined to intervene in the case.
+Added: We filed a motion to dismiss on November 23, 2021.
+Added: That motion is pending.
+Added: We believe this matter is without merit and are vigorously defending this case.
Commercial Litigation and Other Lawsuits
−Removed: Steadfast Insurance Company, et al v.
−Removed: Community Health Systems, Inc., CHS/Community Health Systems, Inc., CHSPSC, LLC and Pecos Valley of New Mexico, LLC;
−Removed: Community Health Systems, Inc., et al v.
−Removed: Steadfast Insurance Company, et al;
−Removed: Anne Sperling, et al v.
−Removed: Community Insurance Group SPC, Ltd.
−Removed: These cases are filed in the Superior Court for the State of Delaware, the Chancery Court for the State of Delaware, and the First Judicial District Court for the State of New Mexico, respectively, and involve insurance coverage disputes related to a $73 million judgment rendered against Pecos Valley of New Mexico, LLC in Anne Sperling, et al v.
−Removed: Pecos Valley of New Mexico, LLC (“Sperling I”) .
−Removed: The first case was brought by Steadfast Insurance Company in Delaware Superior Court seeking a declaration that the Sperling I judgment is not a covered loss as defined by the insurance policies that are the subject of the case.
−Removed: The second case, filed by the Company in Delaware Chancery Court, seeks reformation of the subject policies.
−Removed: The third case (“ Sperling II”) , filed by the plaintiffs in Sperling I , seeks recovery from Pecos Valley of New Mexico, LLC’s insurers for the judgment awarded the plaintiffs in their separate, previous action against Pecos Valley of New Mexico, LLC.
−Removed: The Steadfast complaint was served on November 30, 2018.
−Removed: On December 13, 2018, Admiral Insurance Company, Endurance Specialty Insurance Ltd, and Illinois Union Insurance Company moved to intervene in the suit as petitioners.
−Removed: The Company has initiated counterclaims against each insurer in that case, including for bad faith against Steadfast.
−Removed: The Company filed the Community Health Systems complaint on January 22, 2020.
−Removed: Sperling II was filed on July 24, 2019.
−Removed: Plaintiffs amended their complaint to add Pecos Valley of New Mexico, LLC as a defendant in that action on May 21, 2020, and Pecos Valley of New Mexico, LLC filed a third party action against certain insurer defendants in the case on July 6, 2020.
−Removed: On November 12, 2020, Pecos Valley and one of its insurers reached a settlement with the plaintiffs in Sperling I, and as a result the Sperling I case was dismissed with prejudice on November 19, 2020.
−Removed: The Steadfast, Community Health Systems, Inc.
−Removed: and Sperling II cases remain pending.
−Removed: Trial in the Steadfast and Community Health Systems, Inc.
−Removed: consolidated cases is set for December 6, 2021, and the Steadfast plaintiffs’ motions for summary judgment are pending.
−Removed: The Sperling II case is stayed pending the outcome of Steadfast and Community Health Systems, Inc .
−Removed: We will vigorously defend and prosecute these cases.
−Removed: Thomas Mason, MD, Steven Folstad, MD and Mid-Atlantic Emergency Medical Associates, PA v Health Management Associates, LLC f/k/a Health Management Associates, Inc., Mooresville Hospital Management Associates d/b/a Lake Norman Regional Medical Center and Statesville HMA, LLC d/b/a Davis Regional Medical Center, Envision Healthcare Corporation f/k/a Emergency Medical Services Corporation, Emcare Holdings, Inc., Emergency Medical Services, LP .
+Added: Thomas Mason, MD, Steven Folstad, MD and Mid-Atlantic Emergency Medical Associates, PA v Health Management Associates, LLC f/k/a Health Management Associates, Inc., Mooresville Hospital Management Associates d/b/a Lake Norman Regional Medical Center, Statesville HMA, LLC d/b/a Davis Regional Medical Center, Envision Healthcare Corporation f/k/a Emergency Medical Services Corporation, Emcare Holdings, Inc., and Emergency Medical Services, LP .
This alleged wrongful retaliation case is filed in the United States District Court for the Western District of North Carolina.
3 unchanged sentences
The defendants filed motions to dismiss, which were granted in part and denied in part on September 5, 2019.
−Removed: Trial of this matter is set for January 3, 2022.
−Removed: We believe these claims are without merit and will vigorously defend the case.
+Added: We believe these claims are without merit and are vigorously defending this case.
Tower Health, f/k/a Reading Health System, et al v CHS/Community Health Systems, Inc., et al .
5 unchanged sentences
The court has not issued a decision.
−Removed: We believe these claims are without merit and are vigorously defending the case.
−Removed: Lancaster County Investors Company, et al v CHS/Community Health Systems, Inc.
−Removed: This breach of fiduciary duty and demand for accounting case is pending in the Court of Common Pleas of Lancaster County, Pennsylvania.
−Removed: The plaintiffs are certain minority
−Removed: members of Rose City HMA, LLC, which formerly owned and operated Lancaster Regional Medical Center.
−Removed: The plaintiffs generally claim they are entitled to additional compensation related to the sale of Lancaster Regional Medical Center by Rose City HMA, LLC over and above what they have already received from the proceeds of the sale.
−Removed: We believe these claims are without merit and will vigorously defend the case.
+Added: We believe these claims are without merit and are vigorously defending this case.
Golden, as Litigation Trustee of the QHC Litigation Trust, and Wilmington Savings Fund Society, FSB, solely in its capacity as indenture trustee v Community Health Systems, Inc., et al .
3 unchanged sentences
Plaintiff Wilmington Savings Fund Society is the indenture trustee for certain notes issued by QHC.
−Removed: The complaint seeks damages and other forms of recovery arising out of certain alleged actions taken by the Company and the other defendants in connection with the spin-off of QHC which was completed on April 29, 2016, and includes claims for unjust enrichment and for avoidance of certain transactions and payments by QHC to the Company connected with the spin-off, including the special dividend paid by QHC to the Company as part of the spin-off transactions.
−Removed: We believe these claims are without merit and will vigorously defend the case.
+Added: The complaint seeks damages and other forms of recovery arising out of certain alleged actions taken by the Company and the other defendants in connection with the spin-off of QHC which was completed on April 29, 2016, and includes claims for unjust enrichment and for avoidance of certain transactions and payments by QHC to the Company connected with the spin-off, including the $1.21 billion special dividend paid by QHC to the Company as part of the spin-off transactions.
+Added: We filed a motion to dismiss on January 14, 2022.
+Added: That motion is pending.
+Added: We believe these claims are without merit and will vigorously defend this case.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.