October 5, 2026

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UnitedHealth sues TeamHealth, saying it overpaid $100 million in claims

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UnitedHealthcare has sued TeamHealth Holdings alleging fraud for in excess of-inflating medical codes to get bigger reimbursement.

In 1 example, a 23-12 months-aged person sought cure for indigestion just after taking in a chili puppy and the medical professional gave him Maalox and sent him property, UnitedHealth stated in the lawsuit. “TeamHealth submitted a claim to the United Plaintiffs indicating that it experienced supplied that member with unexpected emergency medical treatment of specially significant complexity beneath exigent situations,” the criticism stated. The corporation allegedly billed UHC $1,712.

TeamHealth CEO Leif Murphy replied to the lawsuit with this assertion: “Courts have continuously dismissed these statements in other jurisdictions. This frivolous lawsuit is a calculated effort to divert focus absent from the courtroom scenario commencing Monday, November 1, in Las Vegas, introduced by TeamHealth affiliate Fremont Crisis Drugs from UnitedHealthcare for their gross underpayment of frontline clinicians. In actuality, the District Courtroom in Nevada dismissed this actual claim by United in the direct up to the demo.  
 
“United proceeds to deliver document income by down coding statements and refusing to think about the experience of frontline clinicians who make a analysis. Even for the duration of a pandemic, United utilizes techniques like these to profit off the backs of unexpected emergency medication suppliers who are on the frontline treating patients and risking their own life. The base line is the considerably less UnitedHealth reimburses, the extra income they make.” 

The lawsuit was filed in federal courtroom in the Jap District of Tennessee on Oct 27. UHC needs a jury demo, damages, courtroom expenses and other fees.

“TeamHealth upcoded tens or hundreds of countless numbers of statements for ER providers, resulting in UHC overpaying by extra than $one hundred million,” UHC claimed in the lawsuit.

WHY THIS Issues

UnitedHealth alleges that because 2016, TeamHealth has upcoded statements and dedicated fraud by misrepresenting the providers supplied.

The United plaintiffs reviewed tens of countless numbers of commercial health and fitness benefits statements submitted by TeamHealth and identified that nicely in excess of 50 % of the statements TeamHealth submitted to United making use of the two maximum level CPT codes for ER visits – roughly sixty% – should really have used decrease-level CPT codes for treating schedule health and fitness troubles, these types of as sore throats and ear bacterial infections.

TeamHealth operates 1 of the greatest unexpected emergency place staffing and billing companies in the U.S. It affiliate marketers with or acquires medical teams throughout the place that have contracts with hospitals and health and fitness devices beneath which the medical teams staff members hospital unexpected emergency rooms, in accordance to UHC.

“But this is in which the medical groups’ involvement ends,” the lawsuit stated.

TeamHealth handles coding and billing from centralized billing centers, then submits the statements to insurers beneath the title of its affiliate or obtained medical group. 

No ER medical professional profited, UHC stated. Medical professionals had been paid a flat, hourly level.

THE Much larger Craze

TeamHealth was obtained by non-public equity organization Blackstone in 2017. Due to the fact then, the corporation has made an “intense pursuit of profit” that has drawn the ire of patients, insurers, and the govt, UHC stated in the lawsuit.

Twitter: @SusanJMorse
E-mail the writer: [email protected]