Hospitals in New York are suing several physicians and other care providers over the proceeds from the sale of a medical insurance business, according to Syracuse.com.
Five things to know:
1. Berkshire Hathaway purchased customer-owned mutual company Medical Liability Mutual Insurance Co. last year for $2.5 billion, and the proceeds are set for distribution among policyholders, which include physicians and nurses. The physicians, or their estates, stand to receive $87.59 to $183,736.12.
2. Multiple hospitals, including St. Joseph's Hospital in New York, have sued to gain portions of the proceeds, arguing the hospital paid premiums on the malpractice insurance. However, the law states policyholders are entitled to the payment.
3. The lawsuit filed by St. Joseph's Hospital argues that physicians signed agreements that designated the hospital as the policy administrator.
4. Defendants in the case say they did not sign a consent agreement, which would have given the hospital rights to proceeds from the insurance company's sale.
5. Two cases regarding the payments have already gone to court. The Erie County Supreme Court ruled providers were entitled to the payments in March, while the state Supreme Court Appellate Division, First Department, ruled in favor of a radiology practice over the individual physicians, to receive the proceeds in April.