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LA Hospital Sues Insurer To Cover $42M Whistleblower Deal

Law360 (July 11, 2018, 4:58 PM EDT) -- A Los Angeles hospital that paid $42 million to settle whistleblower claims sued its insurer, National Union, Tuesday after NU denied the hospital coverage for staying mum while a Department of Justice investigation was active, making the notification late in the insurer's eyes.

Pacific Alliance Medical Center paid $42 million to end whistleblower allegations that it violated the False Claims Act by entering into illegal referral agreements with community clinics. The hospital closed in December 2017 and laid off 600 people, according to reports.

But the...
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