Community, according to the lawsuit, failed to live up to the terms of the agreement. Only two hospitals ever submitted claims to MCS for processing, the lawsuit states.
MCS contends that Community improperly terminated the agreement in February 2005 by citing an identity theft case against a temporary worker who was contracted to MCS. According to the lawsuit, Community failed to follow contractual provisions that allowed MCS 90 days to remedy the situation.
MCS did not specify the damages it is seeking in the lawsuit, but a letter from one of its lawyers in 2005 suggested to Community that MCS estimated the damages at $18.1 million. The letter was filed as an exhibit to the lawsuit.
Community Health Systems has not been served with the lawsuit and therefore has no comment, spokeswoman Tomi Galin said.
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