Saint Mary’s awarded $510M in damages in lawsuit against Universal Health Services
Saint Mary’s Health Network has been awarded over a half a billion dollars in its case against Universal Health Services, a Fortune 500 company that manages hundreds of hospitals and clinics across the U.S.
The $510 million in damages was handed down by a jury in Nevada who found Universal Health Services liable for “fraud, malice, and oppression in a coordinated scheme against Saint Mary’s Health Network during the height of the COVID-19 pandemic,” the hospital said in an announcement.
The judgment included punitive damages, based on allegations that the publicly traded healthcare giant illegally solicited clinicians from Saint Mary’s, in addition to attempting to orchestrate a “mass resignation event," in violation of the contractual obligations Universal Health Services had to support patient care operations at the Reno-based hospital—which is owned by for-profit Prime Healthcare.
Among the claims against Universal Health Services was that it attempted to steal trade secrets from Prime, and disrupted patient care.
“This verdict delivers a resounding message for all of healthcare: integrity and compassion must guide every decision we make,” Sunny Bhatia, MD, President of Prime Healthcare said in a statement. “For over 117 years, Saint Mary’s has been a trusted institution. Patients and communities should always be at the heart of medicine, and this verdict reinforces that trust and care must never be compromised.”
According to Saint Mary’s, evidence proving its allegations included emails and text messages that revealed Universal Health Services plotted to “dismantle” what it saw as competition, as it has recently expanded into Nevada.
“The results of these actions nearly destabilized the hospital,” Saint Mary’s said, adding that Universal Health Services attempted to delete communications that showed evidence of “fraud, malice and oppression.”
The decision is one of the largest jury verdicts ever awarded in a healthcare case.
‘Uncertain’ if the judgment will hold up
In a filing with the Securities and Exchange Commission that responds to the trial, Universal Health Services said it expects the punitive damages to be significantly reduced, which will lower the $510 million burden.
However, it said it was still examining its avenues for appeal.
“We are uncertain as to the ultimate financial exposure related to this matter and we can make no assurance regarding its outcome, or the amount of damages that may be recoverable after post-judgment proceedings and appeals,” the company wrote in its filing.
“If we are unsuccessful in reversing the verdict, or significantly reducing the level of damages, or we are required to post a substantial bond pending appeal, this matter could have a material adverse effect on the financial condition of the company,” it added.
HealthExec reached out to Universal Health Services for comment, and we will update this story with any statement we receive.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.