Lawsuit involving hospitals, Sierra Health continued

Art Nadler

Thursday, Feb. 11, 1999 | 11:23 a.m.

A lawsuit involving Sierra Health Services Inc. and three hospitals in Las Vegas has been continued until next month.

The medical facilities -- Valley, Desert Springs and Summerline hospitals -- sued Sierra Health Services in September for attempting to collect money from them for debts owed by Northern Nevada Medical Center in Sparks. Universal Health Services Inc. is the parent company for all four hospitals.

Sierra Health Services withheld $1.5 million from the Las Vegas hospitals under hospital service and provider agreements.

The HMO's position, in the lawsuit, is that because Universal Health Services Inc. owns the Las Vegas hospitals and Northern Nevada Medical Center, it is responsible for all the hospitals' debts. Sierra contends that Northern Nevada Medical Center owed it $1.5 million and withheld money from the Las Vegas properties to cover the debt.

Sierra argues that Universal Health Services contracted to provide health care services to its plan members. And because Northern Nevada Medical Center entered into an agreement to provide hospital services to Sierra Health plan members, the parent company is responsible for any debt.

Universal Health Services position is that Northern Nevada Medical Center is a separate and distinct entity from the hospitals in Las Vegas.

A March 1 hearing before District Judge Nancy Saitta has been scheduled.

Universal Health Service, located in King of Prussia, Pa., is the nation's third largest public hospital management company. It was founded in 1978 and owns 68 facilities nationwide.

It merged with Quorum Health Group's Desert Springs Hospital two years ago.