This coverage dispute originates from a lawsuit filed on behalf of the U.S. government, against TeamHealth in Texas federal court. The lawsuit accused TeamHealth of over-billing for emergency room services performed by its client hospitals in a fraudulent effort to obtain “grossly overpaid reimbursements” from sources such as Medicare and Medicaid.
TeamHealth filed a lawsuit against its insurance broker, Alliant Insurance Services Inc., claiming that the broker should be responsible for the $10 million excess insurance payment if Ironshore is not ordered to do so.
TeamHealth is a physician practice in the U.S. founded in 1979 and based in Knoxville, Tennessee, pursuing medical outsourcing, including physician staffing and billing services to emergency rooms.
Attorneys for TeamHealth said that its primary insurer, AIG has already paid its total $10 million dollar policy limit, which triggered Ironshore’s coverage obligations under a $10 million excess policy.
The complaint says, “When TeamHealth asked Ironshore to provide the coverage that TeamHealth paid for, Ironshore asked questions and then ‘ghosted’ TeamHealth, leaving TeamHealth to fend for itself.”
