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Cottage Health Sues Kaiser Permanente Over Reimbursement for Care at Santa Barbara County Hospitals | Local News

Cottage Health Sues Kaiser Permanente Over Reimbursement for Care at Santa Barbara County Hospitals | Local News

Cottage Health has submitted a lawsuit alleging the Kaiser Basis Hospitals Inc. healthcare system has not been absolutely reimbursing Cottage’s Santa Barbara County hospitals for treatment supplied to Kaiser insurance policy individuals.

The civil criticism for damages, breach of implied contract, and violation of expert small business codes and overall health and safety codes was submitted in Santa Barbara County Top-quality Court on March 4.

In addition to hospitals in Santa Barbara, Goleta and Santa Ynez, Cottage Overall health operates a children’s medical center, urgent care facilities and rehabilitation centers.  

Kaiser Foundation Hospitals, which is also acknowledged as Kaiser Permanente, is a wellness coverage provider and operates hospitals and health-related facilities through California. 

In its grievance for damages, Cottage Well being alleges that Kaiser Permanente does not have hospitals in the Santa Barbara area, but does insure individuals in the region. The nearest Kaiser Permanente clinic to Santa Barbara is in Ventura.

When Kaiser-insured people in the area want healthcare awareness, they at times go to Cottage Well being amenities for care, and Kaiser-insured travelers and website visitors also use Cottage services, in accordance to the lawsuit.

“Despite Kaiser relying on Cottage Health and fitness to supply treatment to Kaiser clients, Kaiser usually fails to correctly reimburse Cottage Overall health. In performing so, Kaiser commonly assigns by itself deductions under no circumstances agreed to by Cottage Well being. Kaiser’s perform has price tag Cottage Overall health tens of tens of millions, though Kaiser carries on to reap the entire benefits of the rates it prices people.”

A map of Kaiser’s Southern California region facilities shows hospitals and medical centers in Ventura County but none in Santa Barbara County.
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A map of Kaiser Permanente’s Southern California region amenities reveals hospitals and health-related facilities in Ventura County but none in Santa Barbara County.  (Kaiser Permanente image)

When Cottage Overall health supplies treatment for a Kaiser-insured affected individual, it submits claims to Kaiser for reimbursement and expects to be paid out for 100% of that billed cost, the lawsuit statements.

Cottage Wellness commonly presents Kaiser Permanente a price reduction on some elective care (accomplishing the products and services for 85% or 90% of the billed charges) but has not agreed to increase these savings to non-elective care or care outside a particular arrangement, the lawsuit promises.

“On countless numbers of events since 2018, notwithstanding Cottage Overall health continuously informing Kaiser of Cottage Health’s billed expenses, both in normal and in distinct, Kaiser has paid significantly significantly less in reimbursements for services supplied by Cottage Health’s emergency departments.”

Cottage Health’s lawsuit claims that for just about every calendar year 2018 by way of 2021, Kaiser Permanente gave alone discount rates of 30% to 42% when reimbursing claims, and that the enterprise intends to continue these tactics.

“Cottage is educated and thinks that Kaiser’s common observe is to depend on out-of community hospitals, like Cottage Wellness, to supply health care treatment to Kaiser associates, and then to considerably underpay individuals vendors,” the lawsuit claims.

The lawsuit asks for monetary damages and attorneys’ expenditures. 

“Kaiser Permanente is dedicated to preserving well being treatment inexpensive and, regular with California legislation, spending reasonable and reasonable premiums for crisis providers provided to our members by non-Kaiser Permanente hospitals,” a Kaiser Permanente spokesperson explained in a statement to Noozhawk.

“This is the normal spelled out in California legislation, and we fully comply with that standard. We look forward to a court docket reviewing Cottage Health’s declare for higher costs, and are assured we will prevail following an neutral overview of the points.”

Kaiser Foundation Hospitals experienced not submitted a reply in Excellent Court as of Friday.

The situation is plan for a case management convention in Decide Donna Geck’s courtroom in July.

Noozhawk managing editor Giana Magnoli can be achieved at .(JavaScript will have to be enabled to perspective this electronic mail address). Comply with Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Fb.