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ASC loses bid to recover $5.6M from Cigna for now

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An Arizona ASC will have to revamp its complaint against Cigna to recover $5.6 million by next month, or it will be dismissed entirely.

Physicians Surgery Center of Chandler, a physician-owned ASC, sued Cigna in 2020 to recover $5.6 million in out-of-network payments. The insurer accused Physicians Surgery Center of Chandler of forgiving fees for patients while charging Cigna the full amount.

Cigna told the ASC in 2018 that it would deny its claims until the center proved it collected full copays from Cigna members. Physicians Surgery Center of Chandler denied allegations of fee forgiveness for Cigna members and claimed Cigna owed it $5.6 million in the lawsuit.

U.S. District Judge Michael Liburdi dismissed the allegations July 23 because the ASC didn't prove it had specific plan language to recover payments from Cigna, according to court documents. The judge will allow Physicians Surgery Center of Chandler to amend its complaint and resubmit by Aug. 20.

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