Lawsuit Filed Against Las Vegas Healthcare Provider Over Fraudulent Billing

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The Las Vegas courthouse where key healthcare lawsuits are initiated.

News Summary

A lawsuit has been filed against Dignity Health and Emerus Holdings in Las Vegas, alleging fraudulent billing practices concerning Medicaid. The case, led by attorney Al Lasso, claims the healthcare provider refused to bill Medicaid for a car crash victim’s treatment, preferring to seek payment from a settlement instead. The lawsuit raises concerns over the impact of such practices on patients seeking care and highlights ongoing issues within the healthcare system related to insurance claims from automobile accidents.

Las Vegas – A lawsuit has been filed against Dignity Health and Emerus Holdings, a Las Vegas healthcare provider, accusing them of fraudulent billing practices related to Medicaid. The lawsuit, initiated by attorney Al Lasso on June 23 in Clark County District Court, alleges that the provider refused to bill Medicaid for the treatment of a car crash victim, Mohammad Nyazi.

The complaint asserts that the healthcare provider opted not to submit a claim to Medicaid due to their belief that they would receive a higher payment from Nyazi’s car crash settlement. Nyazi, a 36-year-old Clark County resident, sustained injuries in a car accident in March and sought medical treatment at Dignity Health-Emerus Flamingo in Las Vegas.

In May, Nyazi received a bill totaling $17,113 for his treatment, and it was revealed in June that his Medicaid insurance had never been billed. The lawsuit claims that this failure to submit a billing to Medicaid was intentional, arguing that Nyazi was entitled to have his medical expenses covered by his insurance provider.

After media inquiries regarding the case were made, an attorney representing Dignity Health notified Lasso on July 23 that they intended to submit the bill to Medicaid. The lawsuit implies that had Nyazi sought treatment for a different health issue unrelated to the car accident, the provider would have billed Medicaid appropriately.

Nyazi is currently set to receive a gross settlement of $25,000 from the driver responsible for the collision. This case echoes a previous lawsuit in which Ronald McKean took legal action against Dignity Health after being billed $67,000 for treatment related to a car accident; that case eventually settled out of court.

Dignity Health has asserted that they were acting within the bounds of federal and state law by seeking a third-party liability route for payment of services rendered, rather than billing Medicaid directly. This allegation has sparked concern regarding the broader implications of hospitals’ policies when treating patients who might have claims stemming from automobile accidents.

A spokesperson for Nevada Medicaid has not provided comments concerning the legality of the refusal to bill Medicaid for the specific treatments in question.

Attorney Al Lasso has emphasized the potential impact of such billing practices on patients, noting that individuals might be dissuaded from seeking necessary medical care due to fear of unexpected costs and confusing billing processes associated with their insurance claims.

This lawsuit highlights ongoing issues within the healthcare system related to the intersection of automobile accidents, insurance claims, and hospital billing practices. As patients become increasingly aware of these situations, they may seek clarification on their rights and options when it comes to medical care and insurance coverage in accident-related cases.