Prime Healthcare Services and Kaiser Foundation Health Plan have taken a step back from their ongoing legal feuds and agreed to dismiss lawsuits against each other and go to binding arbitration.
They also agreed to undisclosed payment rates when Kaiser Permanente members are treated at Prime Healthcare hospitals, according to Kaiser.
The lawsuits alleged breach of contract and unfair competition, among other charges. Some of the lawsuits have been pending in Los Angeles Superior Court since 2008, according to a Kaiser Permanente release. The two companies have agreed to resolve their issues through confidential and binding arbitration, according to Oakland, Calif.-based Kaiser.
A Kaiser spokeswoman declined to comment further on the agreements. A Prime spokesman also declined to comment beyond a statement announcing the agreement.
In at least one of the lawsuits, Ontario, Calif.-based Prime said Kaiser owed it $100 million in unpaid medical claims and accused Kaiser of conspiring with the Service Employees International Union to keep it out of the market. A judge dismissed that suit, but Prime appealed.
