Facing the music in Florida

Three Canadian travel insurance companies look set to fight their case in a court in Florida this August, after US District Judge Donald Middlebrooks denied the companies’ motion to dismiss a lawsuit brought against them by four Floridian hospitals, who the insurers stated needed to pursue their claims in Canada. Mandy Aitchison has more details Last December, Delray Medical Center Inc., Palm Beach Gardens Community Hospital Inc., West Boca Medical Center Inc. and Tenet St Mary’s Inc. filed a lawsuit in a federal court in West Palm Beach that claimed three Canadian travel insurance companies had been applying discounts to their hospital bills that were not justified. The companies named by the hospitals that brought the suit were Co-operators Life Insurance Co., TIC Travel Insurance Coordinators Ltd, and SelectCare Worldwide Corporation. The suit claims that the insurers were asking for discounts on hospital bills to which tourists (the insurers’ clients) were not entitled, as such discounts were only meant for US domestic patients. The insurers responded by saying that they were, in fact, entitled to the discounts received as they had agreements in place with preferred provider organisations (PPOs) that had negotiated specially discounted rates with the hospitals. The defendants sought to dismiss the case from Florida, arguing that the case needed to be heard in Canada, but Judge Middlebrooks denied this motion. The insurers have also brought a third party into the claim, adding Olympus Managed Health Care Inc., their PPO, as a fellow defendant. Harley Tropin, a partner of Kozyak, Tropin & Throckmorton, the Miami-based legal firm representing the insurers, has said there are no plans for the firm to file an interlocutory appeal, adding: “We plan to win on the merits.” Gail McQuilkin, who is also a partner at Kozyak, Tropin & Throckmorton, highlighted one of the issues central to the case: “The real issue is what the plaintiffs agreed to accept through their contractual relationships with the PPOs.” Alan Lash, a partner at Lash & Goldberg, another local law firm, said the issue of insurance companies asking for discounts was not unique: “This, unfortunately, is a pervasive problem and particularly more so in South Florida where you have a lot of foreign insurance companies doing business here.” The case against the Canadian travel insurers is significant, he added, as it is unusual for the case to be heard in the US rather than Canada, as many hospitals in the US may not have the financial power to pursue a claim in a Canadian court. Lash said of the court order stating the case must be heard in Florida: “The order sends a strong message to foreign insurance companies that purposely do business in Florida that they will have to answer for their conduct in Florida courts and not in the court in the foreign country they are located.” ITIJ spoke to Magdi Riad of SelectCare Worldwide, who said: “We are aware of Judge Middlebrooks decision and are monitoring the case. We are confident we will prevail on the merits, but due to the pending litigation we cannot offer any comments on the case.” Steven Jacobson, chief executive officer of Olympus, commenting on the action, stated the following: “It is most important to note that this is a contract dispute between Tenet and TIC relating to requirements for accessing discounts.  Of greater importance to Olympus is that its international clients continue to be afforded quality treatment at reasonable prices at Tenet facilities. In furtherance of that goal, Olympus and Tenet are in the process of executing a direct contract with the intent of eliminating those aspects of the current arrangement that created the conflict. Olympus’ Discount Secure product will be incorporated in the contract so that Olympus travel clients will no longer have to choose between discount security and savings.” Jacobson concluded: “We will use this matter to strengthen the tie between Olympus and Tenet and consequently enhance healthcare access for our travel clientele at all  Tenet hospitals.” ShareThis Powered By iWebRSS.co.cc