August 2021

Reid Hospital Successfully Appeals Contract Dispute Decision to Seventh Circuit

United States - Indiana

Reid Hospital successfully appealed to the U.S. Court of Appeals for the Seventh Circuit a lower court decision in a contract dispute with Conifer Revenue Cycle Solutions LLC, who it had hired to provide revenue cycle management services. Faegre Drinker’s appellate team represented Reid Hospital in the appeal.

The dispute stemmed from Conifer’s underperformance, which led Reid to sue for breach of contract and to demand over $40 million in lost revenue and consequential damages. The U.S. District Court for the Southern District of Indiana granted summary judgment in Conifer’s favor.

However, the federal appeals court found that the district court was wrong to grant summary judgment on two of Conifer’s three arguments, and did not affirm the third, suggesting in the opinion that Conifer’s reading of the contract was “highly improbable” and “borders on the absurd.”

The federal appeals court reversed the district court’s decision and remanded the matter for trial.

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