Sioux Falls, S.D.-based Avera Health has sued Midwest Medical Insurance, claiming the company skipped out on settlement talks involving 36 lawsuits against a former Avera spine surgeon, leaving the hospital to pay damages out of pocket, the Argus Leader reported Nov. 10.
The 36 lawsuits were settled privately by Avera. The health system is now seeking financial relief, alleging Midwest Medical, a top regional provider of medical professional liability insurance, abandoned it during the mediation process.
"Ultimately, Avera was forced to settle the claims at mediation without MMIC because MMIC left the mediation before a final resolution was reached and refused to participate in further settlement negotiations," according to Avera's legal complaint.
Midwest Medical had not filed a response to the lawsuit as of Nov. 10, the Argus Leader reports.
The settled cases relate to Allen Sossan, MD, a spine surgeon accused of performing unnecessary surgeries for profit and leaving patients severely injured or dead. He fled the U.S. for his native Iran, according to the Argus Leader.
Avera has paid out at least $22.3 million in special damages alone, according to the article.