CareCore Battles Anti-Trust Complaints
By Sarita Chourey
Morris News Service
July 3, 2012 — A new CEO for Bluffton's top employer starts a new era for the health care company, but an earlier one, involving several federal lawsuits, isn't quite over.
The national benefits-management company settled one anti-trust lawsuit last year and continues to fend off others, according to federal district court records. CareCore National announced the hiring of John Arlotta as CEO in June after co-founder Don Ryan died unexpectedly last September.
An anti-trust lawsuit filed in May of 2008 in New York Eastern District Court was closed late last year.
"We have resolved our differences outside of the courtroom," said Allen Rothpearl of the New York pediatric imaging center Jericho Specialty Imaging, declining to elaborate. Federal court records show the case was closed on Dec. 8.
A lawsuit filed against CareCore by Stand-Up MRI of the Bronx, P.C. is listed as a related case and was terminated in mid December. Last September a federal judge had refused to throw out the judgement against the company, which was nearly $40 million, including fees.
Mike Joslin, CareCore's executive vice president, said he couldn't detail the agreement with Rothpearl.
"It is no longer a case anymore," said Joslin. "It has no impact on the company in Bluffton or any other facilites."
As for the pending suits, Joslin said, "There are some remaining cases, but I cannot comment on those, due to the fact that they are outstanding at this point in time. They don't constrain CareCore's growth in Bluffton or Colorado."
Joslin said the company has an operational center in Colorado Springs with about 400 employees, some 400-500 employees dispersed across a dozen states, and more than 500 employees in Bluffton.
In December of 2010, then-CEO Ryan signed an agreement with the New York Attorney General's staff, following a state investigation of CareCore. The company's promise to make specific reforms allowed it to avoid special proceedings from the attorney general. CareCore admitted no wrongdoing.
At the center of the complaints against CareCore was the charge that the company favored its own radiologist owners over outside radiologists, unfairly shutting them out by not contracting with qualifying physicians and physician groups for networks that the company managed for its managed-care organizations.
Other anti-trust complaints, alleging anticompetitive practices against CareCore remain open, according to federal court records. They include:
Eastside Medical Radiology, PLLC sued CareCore in the U.S. District Court for the New York Southern District Court on Dec. 23. The most recent filing was made on Monday June 25.
Central Radiology, P.C. sued CareCore in the on Dec. 21. The suit is pending in U.S. District Court for the Eastern District of New York, and its last filing was made on June 22.
Medical Diagnostic Imaging, PLLC sued CareCore in on on Sept. 27, 2006. The suit is pending in U.S. District Court District of Connecticut, and its last filing was made at the beginning of May.
An additional suit against CareCore was filed by Maurice Lewis in January of last year in the U.S. District Court of the District of Colorado. The latest filing occurred at the end of May in a complaint that is categorized as a job discrimination suit.
Attorneys for the plaintiffs did not respond to questions.
This story submitted from Chourey, Sarita using email address firstname.lastname@example.org