NY's Biggest Health System Loses COVID-19 Coverage Suit

By Daphne Zhang (July 27, 2021, 4:56 PM EDT) -- New York's largest health provider can't collect $1.25 billion in insurance coverage for pandemic-related revenue losses and increased costs from caring for COVID-19 patients, a New York federal judge has ruled, dismissing Northwell Health Inc.'s case against its insurers

U.S. District Judge Jed S. Rakoff on Monday granted summary judgment to Lexington Insurance Co. and Interstate Fire & Casualty Co., holding that Northwell failed to allege its properties suffered a direct physical loss or damage, a precondition for coverage.

The health system, which owns 23 hospitals, could not show that government orders caused a physical loss by prohibiting access to its...

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