A lawsuit by a group of Pennsylvania hospitals suing other in-state hospitals for alleged RICO fraud in obtaining reimbursements for treating indigent patients has been reinstated by the U.S. Court of Appeals for the Third Circuit.
A three-judge appellate panel ruled in St. Luke’s Health Network v. Lancaster General Hospital that the case was improperly dismissed for failure to demonstrate standing for a civil Racketeer Influenced and Corrupt Organizations Act claim, as the plaintiffs allegations were plausible enough to proceed.
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