Health Care Service Corporation v. Neuromonitoring Associates LLC et al.

Docket No.
5:26-cv-00022
District Court
Texas Eastern — Texarkana

Goal

  • Award damages
  • Award restitution
  • Block defendant action
  • Declaration that defendant action is unlawful
  • Vacate arbitration awards

Issues

Why This Matters:

Why This Matters:

Plaintiff, a private health insurer, alleges that health care providers (1) engaged in an illegal kickback scheme with surgeons in exchange for orders on intraoperative neuromonitoring services during surgical procedures; and (2) exploited the No Surprises Act’s independent dispute resolution process by submitting ineligible claims. The allegedly unlawful practices resulted in thousands of arbitration awards against the insurer, cumulatively worth tens of millions of dollars.

Potential Impact:

Potential Impact:

Actions that flout the intent of the No Surprises Act arbitration process through the submission of ineligible disputes could lead to higher costs and lower-quality care for patients.

News And Analysis (2)

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Related Litigation

Current Status

Briefing is ongoing

Legal Issues

Fraud, Negligent Misrepresentation, Unjust Enrichment, Racketeer Influenced and Corrupt Organizations (“RICO”) Act, No Surprises Act

Topic(s)

Arbitration Awards/Conduct

Date Filed
February 18, 2026
Case Type
Civil
Court Type
District Court
Court
Texas Eastern
Division
Texarkana
Judge
Schroeder, Robert W. III Appointed By: Barack Obama
Plaintiff(s)
Health Care Service Corporation
Lead Counsel For Plaintiff(s)
Patton Tidwell & Culbertson
Defendant(s)
Neuromonitoring Associates LLC; Physician Oversight LLC; Monitoring Associates LLC
Lead Counsel for Defendant(s)
McDermott Will & Schulte LLP