Insurance giant Geico has voluntarily withdrawn a federal lawsuit against Hudson Regional Hospital and other affiliates about 11 months after seeking to recover $25 million “wrongfully obtained” through “thousands of fraudulent no-fault insurance charges.”
“On behalf of our staff, I am very proud of the reputation we have established at Hudson Regional Hospital as its high-quality acute care facility during our three years of operation,” HRH President and CEO Dr. Nizar Kifaieh said in a statement.
“The voluntary dismissal of the claim by GEICO against HRH and Premier Anesthesia was a logical resolution and a testament to our standing in the community.”
Back in September, HRH and BMC Hospital LLC, both of which are aiming to take over the Bayonne Medical Center from CarePoint Health, took aim at the opposition over pending litigation with Geico.
While this particular case was not explicitly mentioned, the fact that it’s now in the past can’t hurt HRH’s chances to acquire new facilities moving forward.
“This represents the beginning to a transparent and highly functional relationship that focuses on access to high quality medical care to the millions of GEICO-insured patients in New York and New Jersey,” added HRH Chairman Yan Moshe.
“The dismissal of this lawsuit lays to rest any disagreements between GEICO and Hudson Regional, and provides a lasting framework for open communication, transparency and mutual cooperation,” added Russell Friedman, longtime counsel to Moshe and HRH.
CitiMed, as well as their owner and director, Dr. Regina Moshe – Yan’s sister – were also named in the filing.
Earlier this month, HRH wrote a letter to the New Jersey Department of Health claiming that CarePoint had defaulted on their Bayonne Medical Center lease, which CarePoint adamantly denied.
The NJ DOH has still not opted to weigh in on who will acquire CarePoint’s three hospitals in Bayonne, Hoboken, and Jersey City, respectively.