Hospital system sues insurer for $1B over losses from imaging, other tests during COVID-19
Pittsburgh-based Allegheny Health Network is suing its insurer for breach of contract over losses it incurred following the COVID-19 shutdown of nonemergency services, including imaging and other tests, last year.
The 14-hospital system is joined by dozens of physician practices, surgical affiliates, and hospitals in the four-count civil lawsuit against American Guarantee and Liability Insurance Co., the Pittsburgh Post-Gazette reported Aug. 3.
The lawsuit, first filed in June, alleges the Schaumburg, Illinois-based insurer refused to pay upwards of $100,000 for losses “well in excess of $250,000” after the state shut down services last year to curb COVID-19 from spreading. The move severely reduced patient traffic, resulting in “catastrophic” losses, according to the news outlet
AHN’s policy covers business interruption losses caused by a communicable disease up to $1 billion, the lawsuit states. The health system’s motion to move the case from the Court of Common Pleas of Allegheny County to its Commerce and Complex Litigation Center is scheduled for Thursday.
“COVID-19, a communicable disease, directly impacted AHN’s business,” the lawsuit states, according to the Gazette. “The business loss caused by COVID-19 has had a catastrophic impact on AH N’s various insured locations and its business operations.”
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Matt joined Chicago’s TriMed team in 2018 covering all areas of health imaging after two years reporting on the hospital field. He holds a bachelor’s in English from UIC, and enjoys a good cup of coffee and an interesting documentary.