Van Winkle • Baten Dispute Resolution

Physical therapy services provider enters into a contract to be the exclusive physical therapists at a nursing home. Suit is brought to collect for services provided pursuant to this contract, and for violation of the exclusive provider clause. It is alleged that the nursing home hired the exclusive provider’s staffers and began to bill Medicare for physical therapy in its own name. The nursing home counters that there were excessive charges that did not comport with Medicare billing requirements. The bottom line is the nursing home was on the verge of bankruptcy due to changes in the Medicare reimbursement procedures and could not continue to operate under the contract without ceasing to do business. The seven-figure claim faced reality.