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Mass. physicians group sues Steward Health Care

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A physicians’ group in southeastern Massachusetts  called Compass Medical PC is suing the for-profit Steward Health Care System over what the physicians say are millions of dollars in overdue payments to Compass members.

The Boston Globe reports that “Compass has accused Steward of failing to pay bonuses to doctors and rents on office space and equipment. On Friday, the East Bridgewater-based doctors group sued Steward for more than $20 million in damages.”

“We have worked for over two years to secure this reimbursement and have complied with every request made by Steward to supply needed information and data, and now for the good of our providers and patients, we must take this action,” Compass chief executive Jamie Barber said.

The newspaper reported that “Steward, which owns nine Massachusetts hospitals, shot back with the threat of its own lawsuit, accusing Compass of engaging in ‘deceptive financial practices with the objective of enriching itself at the expense of patients and Steward.”’

“Boston-based Steward said …. Compass officials knowingly received at least $3.5 million more than they were owed from Steward. They said Compass executives refused to consult the Department of Justice about the matter and refused to settle the dispute.”

“Herbert L. Holtz, a lawyer at the Boston firm Holtz & Reed LLP who represents Steward, described ‘an egregious pattern of greed’ at Compass. He said Compass executives were paid $70 million in administrative fees over four years through their lucrative contract with Steward,” the paper reported.

Stewart asserted that Compass’s company’s statements reflect “an alternate reality that bears no resemblance to any actual event,” but Compass alleged that Steward hid important information in the dispute.

It looks like this case will get even nastier.

To read the whole Globe story, please hit this link.

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