Racketeering Claim Axed In $9M Hospital Overbilling Suit

Law360 (September 13, 2019, 5:30 PM EDT) -- A proposed class of health care facilities has failed to show that alleged racketeering by a Pennsylvania hospital caused them to lose out on $9 million in funding for services to low-income patients, a federal judge has ruled in axing the claims.

U.S. District Judge Jeffrey Schmehl sided late Thursday with arguments by Lancaster General Hospital in concluding that St. Luke’s Health Network’s loss of compensation from the state-administered program was not a result of any alleged Racketeer Influenced and Corrupt Organizations Act violation. Instead, the loss stemmed from the state’s decision to end its practice of clawing back and redistributing...

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