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Legal News: ‘Deceptive’ safety grades | Executive indicted | CMS fraud crackdown | DOJ sues health system | $556M settlement

News You Need to Know Today
Legal News: ‘Deceptive’ safety grades | Executive indicted | CMS fraud crackdown | DOJ sues health system | $556M settlement
Wednesday, March 11, 2026
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Editor's Choice: Legal News

Court rules Leapfrog hospital safety grades ‘deceptive,’ orders removal of Tenet ratings

The nonprofit said it intends to appeal the U.S. District Court’s decision, though it will comply with the ruling for now. Five Tenet hospitals filed the lawsuit in April 2025, accusing Leapfrog of issuing ratings via a pay-to-play model.

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Court rules Leapfrog hospital safety grades ‘deceptive,’ orders removal of Tenet ratings

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d-minus-school-letter-grade-600x400.jpg
The nonprofit said it intends to appeal the U.S. District Court’s decision, though it will comply with the ruling for now. Five Tenet hospitals filed the lawsuit in April 2025, accusing Leapfrog of issuing ratings via a pay-to-play model.
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Blood filtration company fined $5.7M, executive charged, for covering up patient deaths

The U.S. Department of Justice said ExThera cooperated with the investigation into a failure to file adverse event notices with the Food and Drug Administration after two cancer patients who used its blood filtration systems in Antigua died shortly after returning home. The California-based company’s former chief regulatory officer has agreed to plead guilty and could serve prison time. 

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Blood filtration company fined $5.7M, executive charged, for covering up patient deaths

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The U.S. Department of Justice said ExThera cooperated with the investigation into a failure to file adverse event notices with the Food and Drug Administration after two cancer patients who used its blood filtration systems in Antigua died shortly after returning home. The California-based company’s former chief regulatory officer has agreed to plead guilty and could serve prison time. 
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FTC seeks more time to settle insulin pricing lawsuit with remaining PBM defendants

The request to the court comes a month after the agency settled with Express Scripts, under the condition the company change its wholesale buying practices, pass on manufacturer rebates and support TrumpRx.gov. Now it's up to CVS Caremark and UnitedHealth’s Optum Rx to make deals of their own. 

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FTC seeks more time to settle insulin pricing lawsuit with remaining PBM defendants

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Sugar Insulin
The request to the court comes a month after the agency settled with Express Scripts, under the condition the company change its wholesale buying practices, pass on manufacturer rebates and support TrumpRx.gov. Now it's up to CVS Caremark and UnitedHealth’s Optum Rx to make deals of their own. 
READ MORE >

Nonprofit health system, Nuance Communications agree to $5M settlement after data theft

A fired employee of Nuance, a Microsoft subsidiary, is responsible for stealing records on 1.3 million patients from Geisinger Health in Pennsylvania. He has pleaded guilty as part of a deal with prosecutors.

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Nonprofit health system, Nuance Communications agree to $5M settlement after data theft

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A fired employee of Nuance, a Microsoft subsidiary, is responsible for stealing records on 1.3 million patients from Geisinger Health in Pennsylvania. He has pleaded guilty as part of a deal with prosecutors.
READ MORE >

Black surgery technician reassigned over race settles discrimination lawsuit out of court

Clestina Lamai, the surgical technician, claimed in a lawsuit that Iowa Methodist Medical Center removed her from surgery at the request of a racist patient. The case was settled as a jury was set to deliver its verdict, local media reports. 

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Black surgery technician reassigned over race settles discrimination lawsuit out of court

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Clestina Lamai, the surgical technician, claimed in a lawsuit that Iowa Methodist Medical Center removed her from surgery at the request of a racist patient. The case was settled as a jury was set to deliver its verdict, local media reports. 
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Cyberattack on healthcare RCM vendor may have impacted 140K patients

The details stem from a report from SecurityWeek, but they’re a little fuzzy. After a 12 GB data trove was posted to the dark web, Vikor Scientific reported to HHS that there were nearly 140,000 victims. However, the source of the breach may be a third-party revenue cycle company, Catalyst RCM. 

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Cyberattack on healthcare RCM vendor may have impacted 140K patients

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The details stem from a report from SecurityWeek, but they’re a little fuzzy. After a 12 GB data trove was posted to the dark web, Vikor Scientific reported to HHS that there were nearly 140,000 victims. However, the source of the breach may be a third-party revenue cycle company, Catalyst RCM. 
READ MORE >

CMS defers $260M in Medicaid funds as part of ‘major crackdown on healthcare fraud’

The money was meant for Minnesota, where criminals were indicted for abusing the Medicaid system to run bogus daycare centers. The Centers for Medicare & Medicaid Services did not specify how the state can rectify the situation to the Trump administration’s satisfaction. 

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CMS defers $260M in Medicaid funds as part of ‘major crackdown on healthcare fraud’

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The money was meant for Minnesota, where criminals were indicted for abusing the Medicaid system to run bogus daycare centers. The Centers for Medicare & Medicaid Services did not specify how the state can rectify the situation to the Trump administration’s satisfaction. 
READ MORE >

Ohio health system sued by DOJ over alleged antitrust violations related to payer contracts

The U.S. Department of Justice and the state attorney general's office allege OhioHealth used its position of market dominance to pressure commercial plans into always keeping its hospitals and clinics in-network, even when competitors offer services for a better rate.

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Ohio health system sued by DOJ over alleged antitrust violations related to payer contracts

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Ohio
The U.S. Department of Justice and the state attorney general's office allege OhioHealth used its position of market dominance to pressure commercial plans into always keeping its hospitals and clinics in-network, even when competitors offer services for a better rate.
READ MORE >

After third conviction, ‘fake nurse' finally gets 75 months in prison

The U.S. Department of Justice said Leticia Gallarzo, 51, most recently pleaded guilty to aggravated identity theft in Oct. 2023, but she skipped town and was able to get employment as a nurse and physician assistant in Illinois and California before being caught.

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After third conviction, ‘fake nurse' finally gets 75 months in prison

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handcuffs arrested arrest jail
The U.S. Department of Justice said Leticia Gallarzo, 51, most recently pleaded guilty to aggravated identity theft in Oct. 2023, but she skipped town and was able to get employment as a nurse and physician assistant in Illinois and California before being caught.
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Kaiser Permanente hit with record-setting $556M Medicare Advantage fraud settlement

The California-based health system faced multiple accusations of upcoding diagnoses to receive additional risk-adjusted payments from the Medicare Advantage program. Its payer plan and providers were implicated in what the DOJ described as systemic fraud. Kaiser Permanente denies any wrongdoing.

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Kaiser Permanente hit with record-setting $556M Medicare Advantage fraud settlement

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the-kaiser-permanente-thrive-center-street-telegraph_1300x867.jpg
The California-based health system faced multiple accusations of upcoding diagnoses to receive additional risk-adjusted payments from the Medicare Advantage program. Its payer plan and providers were implicated in what the DOJ described as systemic fraud. Kaiser Permanente denies any wrongdoing.
READ MORE >

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