Nevada jury sides with TeamHealth, rules UnitedHealthcare underpaid its providers

A Nevada jury ruled this week that UnitedHealthcare underpaid physicians at three TeamHealth affiliates in the state, dealing the insurer a blow in its ongoing back-and-forth with the physician staffing company.

The jury awarded TeamHealth $2.65 million in compensatory damages and is weighing how much UnitedHealthcare will owe in punitive damages. The jury reached a decision following two days of deliberation and nearly three weeks of testimony.

“On behalf of our more than 15,000 clinicians, TeamHealth is thrilled by the jury’s decision to hold UnitedHealthcare accountable for the considerable harm they have caused to Nevada emergency room clinicians and their patients,” said TeamHealth President and CEO Leif Murphy in a statement.

“The court evidence clearly demonstrated that United’s refusal to adequately reimburse emergency medicine physicians was intentional and will no longer be tolerated," Murphy said. "TeamHealth looks forward to continuing its efforts to ensure that our frontline clinicians have the resources to provide the high-quality lifesaving care and services patients rely on, from coast to coast.”

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“We are reviewing the implications of the decision," a UnitedHealthcare spokesperson said in a statement to Fierce Healthcare. "We remain committed to helping contain rapidly rising health care costs for the people and employer customers we’re privileged to serve.”

The insurer and provider group have been embroiled in a heated legal battle in multiple arenas, with the Nevada lawsuit only the latest update in their ongoing spat.

In late October, UnitedHealthcare filed suit against TeamHealth, alleging it upcoded for services to the tune of $100 million. The insurer claims TeamHealth purposefully upcoded for tens, if not hundreds, of thousands of claims.

As one of the country's largest emergency department staffing firms, TeamHealth possesses significant clout to drive up costs, UnitedHealthcare alleged.

In addition, nine more lawsuits from TeamHealth affiliates are pending in other states including Florida, New Jersey, New York, Oklahoma and Texas. The staffing group said in its announcement that it "is committed to ensuring that our frontline healthcare providers can secure the necessary reimbursement from insurers."