Cases & Investigations
Kelsey-Seybold Medical Group Health Care Litigation
Type: Current Cases
Case Number: C.A. No. 4:22-cv-04354
Defendant(s): Kelsey Seybold Medical Group PLLC d/b/a Kelsey Seybold Medical Clinic and Laboratory Corporation of America Holdings
Court: United States District Court for the Southern District of Texas, Houston Division
Wolf Popper LLP filed a lawsuit against Kelsey-Seybold Clinic and Laboratory Corporation of America (“LabCorp”) (collectively “Defendants”) in the 61st District Court, Harris County, Texas State Court, alleging that Defendants’ billing practices with respect to laboratory services performed at its onsite LabCorp facilities are deceptive to consumers. Kelsey-Seybold is a network of thirty-four multi-specialty clinics in Texas. Of these, more than twenty locations have an on-site LabCorp facility providing laboratory services for Kelsey-Seybold patients. The class action complaint alleges that the Defendants failed to disclose to Kelsey-Seybold patients that services performed at these onsite LabCorp facilities would be billed by Kelsey-Seybold and consequently would end up costing more than what it would have been, had LabCorp billed directly. This method of billing, made possible through an express agreement between Kelsey-Seybold and LabCorp, is called pass-through billing, and has been specifically identified as an improper billing scheme in a white paper hosted on CMS’s website. The complaint brings claims on behalf of a class of patients affected by Kelsey-Seybold’s conduct, alleging violations of the Texas Deceptive Trade Practices Act (“Texas DTPA”) and common law. The complaint seeks refunds for patients who have been overcharged by Kelsey-Seybold, and demands that Kelsey-Seybold cease its allegedly unlawful conduct. LabCorp removed the case from State court to federal court. The case is now pending before the S.D.Tex.
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