Becker's ASC Review

115 HEALTHCARE NEWS Virginia health system sues insurer after $150M in COVID-19 losses By Ayla Ellison R oanoke, Va.-based Carilion Clinic is suing its insurance provider, American Guarantee and Liability Insurance Co., after the insurer alleg- edly refused to cover the system's losses tied to the COVID-19 pandemic, according to WSLS. Carilion Clinic says it has lost more than $150 mil- lion because of the pandemic. American Guarantee allegedly refused to provide coverage or properly investigate Carilion Clinic's losses, according to the complaint filed March 18. "To cushion the impact of the coronavirus and CO- VID-19, Carilion Clinic turned to its property insurer, AGLIC, to whom Carilion Clinic had paid nearly $1 million in premiums in exchange for $1.3 billion in property damage and time element (also known as business interruption) coverage effective June 1, 2019 to June 1, 2020," the lawsuit states. "AGLIC, however, declined to fulfill its obligations to Carilion Clinic under the policy." Carilion is seeking damages for breach of contract and a judgement declaring the scope of American Guaran- tee's obligation to cover the losses under the policy. As of March 24, American Guarantee had not filed a response to the complaint. n Sanford no longer pursuing Intermountain merger By Morgan Haefner S anford Health is no longer pursuing a merger with Inter- mountain Healthcare, a Sanford spokesperson confirmed with Becker's Hospital Review March 15. Bill Gassen, the CEO of Sanford Health, told Inforum the Sioux Falls, S.D.-based health system hasn't resumed merger discus- sions with Intermountain Healthcare since they were suspend- ed in December 2020. At the end of last year, Sanford indefinitely suspended discussions for its planned merger with Salt Lake City-based Intermountain Health because of the abrupt exit of Sanford's longtime president and CEO, Kelby Krabbenhoft. Mr. Gassen, who took over Sanford's CEO role Nov. 24, 2020, told Inforum he will focus growth and investments in the states where the health system already operates: North Dakota, South Dakota, Minnesota and Iowa. Mr. Gassen told the news outlet his decision to no longer pursue the proposed merger comes as he prioritizes Sanford's patients during the CO- VID-19 pandemic. "Right now we can't afford to take our eye off the ball in re- gards to fighting the pandemic," which he told Inforum is the health system's "No. 1 priority." Becker's Hospital Review reached out to Intermountain for comment. A spokesperson from Intermountain said nothing has changed since the health systems announced they were indefinitely suspending merger talks in December 2020. n Physician sentenced to jail for placing explosives at Michigan hospital By Kelly Gooch A pathologist contracted to work in the lab at McLaren Port Huron (Mich.) Hospital was sentenced to three years' probation and 93 days in jail for plac- ing explosives at the facility, the Port Huron Times Herald reported March 23. Michael Patrick Barna, MD, was sentenced by St. Clair County Circuit Judge Dan Damman about two months aer he pleaded guilty in January to "explosives, sending with intent to fright," according to the report. An explosives violation — "vulnerable target (health facil- ity)" was dismissed in the plea deal. Police said Dr. Barna entered the hospital Nov. 4 and placed incendiary devices in the trash cans at the facility. The three de- vices were pieces of dry ice in water, sealed in plastic bottles. No one was injured, patient care was not interrupted, and there was no damage to the hospital. However, the hospital said employ- ees were affected. "I'd like to thank everyone who responded so quickly and effectively that aernoon. is was an unprecedented attack that created a great deal of uncertainty and anxiety," McLaren Port Huron President and CEO Eric Cecava said in a statement shared with Becker's March 23. "From the team members who comforted patients, visitors and colleagues who were shaken by the incident, to our team members in facilities, housekeeping and security who worked closely with law enforcement to determine if there were other devices, the professionalism and compassion shown that day was astounding, and I'm proud of our team's calm but determined actions," he said. Dr. Barna, whose medical license is still active, according to the Michigan Board of Medicine website, told the court he'd started going to counseling to confront his errors in action and judgment, according to Times Herald. e newspaper reported that he also said he's enrolled in community college so he can start a new career. n

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