Hospitals Seek Defense Costs For Kickback Suit

Law360, New York (May 18, 2009, 12:00 AM EDT) -- An alliance of hospitals has sued four insurers, including the National Union Fire Insurance Co. of Pittsburgh, Pa., claiming the insurers have a duty to defend the hospitals in a lawsuit alleging they submitted false Medicare claims as part of a scheme to pay kickbacks to doctors in exchange for referrals.

In a complaint filed Friday in the U.S. District Court for the Southern District of Ohio, the Health Alliance of Cincinnati Inc. alleges that National Union, Newmarket Underwriters Insurance Co., Arch Insurance Co. and Axis...
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