Lawsuit says company refused to bill Medicaid for man hurt in Las Vegas crash

A recent lawsuit accuses a Las Vegas healthcare provider of refusing to bill Medicaid for a man’s treatment and suggests that refusal was motivated by a belief the provider could get more money from his car crash settlement.

“Upon information and belief, Defendants refused to bill Plaintiff’s Medicaid insurance based solely on the knowledge that Plaintiff was represented by legal counsel for potential claims arising from the underlying automobile crash,” the complaint said.

Attorney Al Lasso filed the suit in Clark County District Court June 23 on behalf of Mohammad Nyazi, claiming fraud and breach of contract.

Defendants Dignity Health and Emerus Holdings have not yet filed an answer in the suit and did not respond to requests for comment.

But Lasso said that an attorney for Dignity notified him on July 23 that it would submit the bill to Medicaid. That was after a reporter reached out to Dignity and Emerus.

This suit follows a case last year with similar allegations against a Dignity hospital.

Lasso said he thinks that hospitals treating someone injured in a vehicle crash will “assume that they can get a lot more money out of the person than if they just billed their insurance.”

The attorney added: “If he just went in on anything but a motor vehicle crash, they would’ve definitely billed his insurance company, in my opinion.”

Received a $17,113 bill, complaint says

Nyazi, 36, a Clark County resident, was injured in a March crash and went to Dignity Health-Emerus Flamingo in Las Vegas to receive treatment, according to the suit.

Emerus and Dignity opened the facility where Nyazi went under a joint-venture partnership, according to an Emerus news release.

Nyazi received a $17,113 bill in May, the complaint said, and in June, Lasso’s injury firm received a fax from Dignity Health-Emerus stating that the provider “never billed the provided Medicaid insurance of” Nyazi.

The suit alleged that the omission was purposeful and stated that Nyazi “was entitled” to have the claim billed to Medicaid.

Dignity and Emerus have said the hospital was “complying with federal and state law by pursuing third-party liability for payment of medical services,” according to the complaint.

A Nevada Medicaid spokesperson asked about the legality of refusing to bill Medicare or Medicaid for treatment declined to comment.

“It just doesn’t seem right,” said Lasso. “Anybody could walk in there and want to be treated for injuries and be told, ‘Oh yes, we’re going to bill your insurance company,’ they accept your insurance and then, the next thing you know, you get a bill for some $17,000.”

Nyazi is receiving a gross accident settlement of $25,000 from the driver who hit him, according to Lasso.

In the case last year, Ronald McKean sued Dignity Health and other entities, alleging that after he had a car accident in 2022, he sought treatment at St. Rose Dominican Hospital — De Lima Campus, which sent his account to collections.

McKean then received a collections letter showing a balance due of more than $67,000, according to his suit.

“Upon information and belief, St. Rose willfully, intentionally, and/or negligently failed and refused to submit Mr. McKean’s medical bills to Medicare for payment,” his complaint said.

Attorneys for Dignity denied those allegations in a court filing, but court records indicate the hospital ultimately settled the case with McKean.

Contact Noble Brigham at nbrigham@reviewjournal.com. Follow @BrighamNoble on X.