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Legal News: CT hospital accused of running 'fake ICU' | Fraud company bilks Medicare of $90M | EFF sues over Medicare AI

News You Need to Know Today
Legal News: CT hospital accused of running 'fake ICU' | Fraud company bilks Medicare of $90M | EFF sues over Medicare AI
Tuesday, April 7, 2026
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Editor's Choice: Legal News

Connecticut hospital accused of running ‘fake’ telehealth ICU that led to man’s death

Bridgeport Hospital, part of Yale New Haven Health, is accused in a lawsuit of not staffing an overnight physician in an intensive care unit. It’s alleged that the remote care coordination caused delays that led to the death of 26-year-old Conor Hylton, who was experiencing emergency seizure-like symptoms.

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Connecticut hospital accused of running ‘fake’ telehealth ICU that led to man’s death

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Bridgeport Hospital, part of Yale New Haven Health, is accused in a lawsuit of not staffing an overnight physician in an intensive care unit. It’s alleged that the remote care coordination caused delays that led to the death of 26-year-old Conor Hylton, who was experiencing emergency seizure-like symptoms.
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Foreign national accused of operating fake company that billed Medicare for $90M—and now he’s on the run

A federal grand jury indicted Anar Rustamov, 38, of Azerbaijan on 14 counts of healthcare fraud. The complex conspiracy allegedly involved billing Medicare Advantage for medical equipment that providers never ordered. Rustamov is currently a fugitive from justice. 

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Foreign national accused of operating fake company that billed Medicare for $90M—and now he’s on the run

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police cop car siren
A federal grand jury indicted Anar Rustamov, 38, of Azerbaijan on 14 counts of healthcare fraud. The complex conspiracy allegedly involved billing Medicare Advantage for medical equipment that providers never ordered. Rustamov is currently a fugitive from justice. 
READ MORE >

Over 130 hospitals sue HHS over changes to the DSH payment calculation that could cost facilities billions

In total, 131 hospitals are acting as plaintiffs. They’re asking a court to throw out 2023 changes to the Disproportionate Share Hospital calculation that altered the way Medicare Advantage and Social Security income were factored into the risk-adjusted payments hospitals receive for caring for vulnerable patient populations.

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Over 130 hospitals sue HHS over changes to the DSH payment calculation that could cost facilities billions

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Medicare Money
In total, 131 hospitals are acting as plaintiffs. They’re asking a court to throw out 2023 changes to the Disproportionate Share Hospital calculation that altered the way Medicare Advantage and Social Security income were factored into the risk-adjusted payments hospitals receive for caring for vulnerable patient populations.
READ MORE >

Lawsuit against Elevance Health alleging use of ‘ghost networks’ officially moving forward

On Tuesday, a judge formally rejected a motion by the company to have the case dismissed. Carelon Behavioral Health, a subsidiary of Elevance, is accused of publishing an inaccurate directory of providers for those seeking mental health services.

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Lawsuit against Elevance Health alleging use of ‘ghost networks’ officially moving forward

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legal liability malpractice artificial intelligence
On Tuesday, a judge formally rejected a motion by the company to have the case dismissed. Carelon Behavioral Health, a subsidiary of Elevance, is accused of publishing an inaccurate directory of providers for those seeking mental health services.
READ MORE >

Trump DOJ launches probe into three medical schools over possible race-based admissions

Ohio State University College of Medicine, Stanford University School of Medicine and UC San Diego School of Medicine all received letters this week where federal authorities are requesting details related to admissions, including standardized test scores, donor correspondence and more. The schools say they are already compliant with state and federal regulations. 

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Trump DOJ launches probe into three medical schools over possible race-based admissions

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Stanford Medicine
Ohio State University College of Medicine, Stanford University School of Medicine and UC San Diego School of Medicine all received letters this week where federal authorities are requesting details related to admissions, including standardized test scores, donor correspondence and more. The schools say they are already compliant with state and federal regulations. 
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DOJ accuses New York health system of engaging in anticompetitive business practices

In a complaint filed in federal court, the U.S. Department of Justice claims NewYork-Presbyterian Hospital uses its power of “scale, breadth and configuration” to control payer contracts, making it difficult for insurers to develop low-cost plans. The health system denies any wrongdoing.

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DOJ accuses New York health system of engaging in anticompetitive business practices

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Statue of Liberty New York City healthcare
In a complaint filed in federal court, the U.S. Department of Justice claims NewYork-Presbyterian Hospital uses its power of “scale, breadth and configuration” to control payer contracts, making it difficult for insurers to develop low-cost plans. The health system denies any wrongdoing.
READ MORE >

EFF sues CMS over deployment of Medicare prior authorization AI

The Electronic Frontier Foundation, a nonprofit digital civil rights advocacy group, said it filed a Freedom of Information Act request seeking more information about the “WISeR” pilot program, which effectively adds a prior-authorization process to traditional Medicare in six states. To date, it’s received no response. 

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EFF sues CMS over deployment of Medicare prior authorization AI

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EFF-WISeR-FOIA-Lawsuit-Image
The Electronic Frontier Foundation, a nonprofit digital civil rights advocacy group, said it filed a Freedom of Information Act request seeking more information about the “WISeR” pilot program, which effectively adds a prior-authorization process to traditional Medicare in six states. To date, it’s received no response. 
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Lawsuit dropped against squatter patient who refused to leave hospital room for 5 months

It’s unclear why Tallahassee Memorial HealthCare dropped its lawsuit, but it did so with prejudice, meaning the hospital cannot refile. There are many unanswered questions surrounding the unusual case, including how common incidents like this are and whether or not the hospital can technically bill for the time the room was occupied.

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Lawsuit dropped against squatter patient who refused to leave hospital room for 5 months

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Hospital gurneys
It’s unclear why Tallahassee Memorial HealthCare dropped its lawsuit, but it did so with prejudice, meaning the hospital cannot refile. There are many unanswered questions surrounding the unusual case, including how common incidents like this are and whether or not the hospital can technically bill for the time the room was occupied.
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Medicare Advantage fraud allegations against Aetna settled for nearly $118M

The U.S. Department of Justice said the insurer upcoded patient diagnoses to boost risk-adjusted payments it received from the Centers for Medicare & Medicaid Services. The company did not admit to wrongdoing, despite agreeing to the payout. 

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Aetna
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Medicare Advantage fraud allegations against Aetna settled for nearly $118M

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Aetna
The U.S. Department of Justice said the insurer upcoded patient diagnoses to boost risk-adjusted payments it received from the Centers for Medicare & Medicaid Services. The company did not admit to wrongdoing, despite agreeing to the payout. 
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ACIP meeting postponed after judge pauses RFK’s new vaccine recommendations

Judge Brian Murphy with the U.S. District Court of Massachusetts sided with the American Academy of Pediatrics and other plaintiffs who challenged the authority of HHS Secretary Robert F. Kennedy Jr to effectively remove the Advisory Committee on Immunization Practices from the process put in place to make changes to CDC vaccine recommendations. 

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ACIP meeting postponed after judge pauses RFK’s new vaccine recommendations

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Bobby Kennedy Jr
Judge Brian Murphy with the U.S. District Court of Massachusetts sided with the American Academy of Pediatrics and other plaintiffs who challenged the authority of HHS Secretary Robert F. Kennedy Jr to effectively remove the Advisory Committee on Immunization Practices from the process put in place to make changes to CDC vaccine recommendations. 
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