Hospitals Hold National PPO Accountable and Obtain Nearly $2 Million Arbitration Award
Lash & Goldberg LLP represented several South Florida hospitals of a national health system against Beech Street, a national brokered preferred provider organization. The hospitals contended that Beech Street improperly allowed fraudulent and unlicensed payers to access the preferred provider network, exposing the hospitals to claims for medical services that could not, and would not, be paid by the fraudulent entities.
After a lengthy final arbitration hearing, a panel of three arbitrators found in favor of the hospitals and concluded that the PPO had breached the parties’ contract and its obligations of good faith and fair dealing. The arbitrators awarded the hospitals nearly $2 million in damages.