Illinois Supreme Court Rejects Zurich's Attempt at Further Appeal

In our October 2009 posting, the Illinois Appellate Court had just affirmed a decision of the trial court that rejected Zurich's attempt to dismiss the suit or to compel arbitration of the suit. Zurich then asked the Illinois Supreme Court for further review. On March 24, 2010, the Illinois Supreme Court said "no" to Zurich's request.

In the pleadings, our clients allege that Zurich improperly discounted payments to them after medical services were rendered. In words familiar to the medical community, it is alleged that Zurich engaged in a silent Preferred Provider Organization scheme.

Our client entered into a contract with CCN Managed Care, a "provider agreement," to participate in a Preferred Provider Organization network. It is alleged, however, that CCN did not enter into a "payor agreement" with Zurich. Zurich is alleged to have taken discounts anyway without directing patients, through the use of financial incentives, to our clients. After hearings, the trial court concluded that Zurich never had a proper, written, payor agreement with CCN.

By late-April 2010, the suit should be back in the trial court.

LakinChapman, LLC regularly represents medical providers and consumers in class action litigation. Those seeking more information may contact the firm at medicalbillreview@lakinchapman.com (medical providers) or classaction@lakinchapman.com (consumers), or call (800) 851-5523.