Legal News

Stories about physicians and other healthcare professionals involved in lawsuits—as either a plaintiff or a defendantor accused of breaking the law. Various legal updates or unusual stories in the news may land here.

California State Capitol Sacramento

Newsom vetoes bill to regulate private equity transactions in healthcare

Assembly Bill 3129 would have given the California Attorney General oversight of all private equity investments or purchases involving a healthcare entity. Gov. Gavin Newsom argued that a similar regulatory framework is already in place. 

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Public health coalition wins lawsuit against EPA for lack of fluoride oversight

A federal judge in California ruled existing evidence of the negative effects of fluoride in drinking water warrants an investigation and potential action from the Environmental Protection Agency. 

Blue Cross Blue Shield BCBS

Louisiana insurer ordered to pay $421M for breast reconstruction surgeries

Blue Cross and Blue Shield of Louisiana failed to fully reimburse St. Charles Surgical Hospital for 7,800 procedures, despite authorizing them.

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Walmart workers sue over tobacco fees levied for health plan trust

The class action lawsuit argues employees cannot escape the fees even after they stop using tobacco, a violation of labor regulations.  

Epic sued by interoperability startup following dispute over patient data

Particle Health has accused Epic Systems of monopolistic business practices that hinder data-driven initiatives to improve patient care. Epic calls the complaint “baseless.” 

California State Capitol Sacramento

Q&A: Healthcare attorney skeptical of California’s new private equity regulation

AB 3129 grants the Attorney General of California oversight of private equity transactions in healthcare. An attorney with Holland & Knight is concerned about the unintended consequences of the proposed law. 

Federal Trade Comission FTC Sign logo

FTC sues PBMs and GPOs for insulin price collusion

In a statement announcing its lawsuit, the FTC said Caremark, Optum RX and Express Scripts benefit from manufacturer rebates and ignore lower-costing drugs as a way to artificially increase prices. 

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FTC sues drug middlemen over insulin prices, puts others on notice

The FTC alleges that pharmacy benefit managers have set up a system where they get rich, while patients are forced to pay rising insulin costs. The agency also called out drug manufacturers such as Eli Lilly, Sanofi and Novo Nordisk, saying their own actions have raised serious concerns.

Around the web

HHS has thought through the ways AI can and should become an integral part of healthcare, human services and public health. Last Friday—possibly just days ahead of seating a new secretary—the agency released a detailed plan for getting there from here.

Philips is recalling the software associated with its Mobile Cardiac Outpatient Telemetry devices after certain high-risk ECG events were never routed to trained cardiology technicians as intended. The issue, which lasted for two years, has been linked to more than 100 injuries. 

Heart Rhythm Society President Kenneth A. Ellenbogen, MD, detailed a new advocacy group focused on improving EP reimbursements, patient care and access. “If you’re not at the table, you’re on the menu," he said.