3rd Circ. Revives RICO Suit Over Pa. Hospital's Expenses

Law360 (July 23, 2020, 4:14 PM EDT) -- The Third Circuit has revived a Racketeer Influenced and Corrupt Organizations Act suit alleging a Pennsylvania hospital unlawfully pocketed millions in state funding based on inflated expense claims for treating uninsured patients, ruling in a precedential opinion that other suing hospitals adequately claimed such misconduct left them with fewer dollars.

A circuit panel on Wednesday upended U.S. District Judge Jeffrey L. Schmehl's ruling last year tossing a proposed class action from St. Luke's Health Network Inc. and other plaintiffs against Lancaster General Hospital and related parties over funding from the Keystone State's Hospital Extraordinary Expense Program.

The appeals court likened the...

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