Health Care Overcharging

Mount Laurel, NJ: (mar-17-08) A putative class action lawsuit was brought against MedQuist Inc., naming the company and certain current and former officers, alleging that the company overcharged certain non-federal governmental hospitals and medical centers for transcription services. Court records state that the suit, filed in the US District Court for the Central District of California, was brought by the South Broward customer class, comprising of the South Broward Hospital District, d/b/a Memorial Regional Hospital. It was stated that plaintiffs twice amended the complaint adding and dropping named plaintiffs, and that the lawsuit was transferred to the US District Court District for the District of New Jersey on Mar. 30, 2005.

In a recent development in the case, MedQuist officials announced that the company executed a settlement term sheet with the individual named plaintiffs and certain other putative class members. Under the terms of the settlement agreement, the company agreed to pay $7,537,001.83 to resolve all claims. As a result, the plaintiffs will release the company and all individual defendants from all claims and dismiss the action in its entirety with prejudice. The settlement was made with individual plaintiffs and therefore no class was certified. MedQuist did not admit to any liability or wrongdoing in agreeing to settle. [BIO-MEDICINE: MEDQUIST ANNOUNCES ENTRY INTO SETTLEMENT TERM SHEET RESOLVING SOUTH BROWARD LITIGATION]

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