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November 21, 2025
Party Seeking Discovery is Entitled to “Anything Relevant to Party’s Claim or Defense

Discovery Attempt by Alleged Fraudulent Health Care Provider Fails

Post 5232

Read the full article at https://www.linkedin.com/pulse/party-seeking-discovery-entitled-anything-relevant-zalma-esq-cfe-ce7kc, see the video at https://rumble.com/v7204g8-discovery-is-entitled-to-anything-relevant-to-partys-claim-or-defense.html and at https://youtu.be/Nuet_er3qXU, and https://zalma.com/blog plus more than 5200 posts.

Upcoding and Health Care Fraud

In UnitedHealthcare Services, Inc., et al. v. Team Health Holdings, Inc., et al., No. 3:21-cv-00364-DCLC-DCP, United States District Court for the Eastern District of Tennessee, District Judge Clifton L. Corker (November 18, 2025) This is a discovery ruling, not a final merits decision.

The Disputes

This is a fraud/RICO lawsuit brought by UnitedHealthcare (and affiliates, collectively “United”) aganst TeamHealth (a large physician staffing company focused on emergency medicine). The companies have a history of mutual litigation over billing practices, including prior suits where TeamHealth accused United of underpaying claims (“downcoding”) and won substantial judgments/arbitrations against United.

Key Facts and Allegations

Plaintiffs’ Claims

TeamHealth allegedly engaged in systematic upcoding by submitting claims with inflated billing codes (CPT codes) that misrepresent the acuity/level of emergency services provided, leading to overpayments with simple cases (e.g., indigestion) billed as high-complexity critical care.

United Health estimated overpayments of more than $100 million since 2016.

Causes of action:

1. Common-law fraud and negligent misrepresentation.
2. Violations of Tennessee insurance fraud statutes (Tenn. Code Ann. §§ 56-53-102, -103, -107).
3. Tennessee Consumer Protection Act and similar state laws.
4. Federal civil RICO (18 U.S.C. § 1962(c) – substantive) and RICO conspiracy (§ 1962(d)): Alleging TeamHealth operated an “association-in-fact” enterprise to conduct patterned fraud via mail/wire.

Defendants’ Position (TeamHealth):

Denies fraud; claims its coding is standard and appropriate. Argues United’s allegations rely on comparisons to other providers’ coding rates, making comparator data relevant for defense (e.g., to show TeamHealth’s practices are industry-normal, not fraudulent or indicative of a distinct RICO enterprise).

During fact discovery, TeamHealth served Requests for Production:

1. “Coding acuity data” (billing code distributions by severity level) from Sound Physicians (an emergency medicine group) and other United-affiliated or Optum-related EM providers.

2. Documents showing the corporate structure of Sound Physicians and those other entities.

TeamHealth’s Relevance Argument:

Sound Physicians is partially owned by Optum (a UnitedHealth Group affiliate since a 2018 investment). If Sound (allegedly “United-affiliated”) uses similar high-acuity coding or similar decentralized corporate structures, it undermines United’s claims that TeamHealth’s practices are outlier, fraudulent, or evidence of a nefarious RICO “enterprise” (vs. normal business). Rebuts intent, “distinctness” of enterprise, and non-standard coding allegations.
United’s Counterargument:

Optum’s stake in Sound is a passive minority investment; United does not control Sound’s coding policies, billing, or operations. Data from an uncontrolled third-party entity has no probative value on whether TeamHealth defrauded United.

Magistrate Judge Poplin’s Ruling

Granted compulsion for United’s own corporate structure. Denied as to RFPs 48, 50, and 51 insofar as they sought Sound/other affiliated groups’ data: “does not make it more or less likely that Defendants violated RICO or upcoded.”
TeamHealth’s Objection:

Argued Magistrate applied overly strict relevance standard; comparator evidence is discoverable under broad Fed. R. Civ. P. 26(b)(1),

District Judge Corker’s Ruling

Broad: Anything “relevant to any party’s claim or defense” and proportional. Even broader historical view ecompasses info that “bears on, or that reasonably could lead to other matter that could bear on” issues. But not unlimited: No “fishing expeditions”; courts may limit overly broad/irrelevant requests.

Holding: Denied TeamHealth’s objection; upheld Magistrate in full.

Magistrate’s conclusion (data from Sound not relevant) was not clearly erroneous or contrary to law. Ruling found to be sound is an entity United “does not control.” Its coding data or structure would not reasonably lead to admissible evidence on TeamHealth’s alleged upcoding or RICO enterprise.
For the Parties:

The ruling limits TeamHealth’s ability to obtain comparator evidence from United-affiliated (but not controlled) providers. Discovery continues on other issues; trial date not yet set (dispositive motions were due ~March 2025 per earlier orders). Upcoding allegations are common defenses by payers against high-billing EM providers.

The case remains active; this is purely a procedural win for United on one discovery front. This ruling is narrow and deferential—typical for objections to magistrate discovery orders, which are overturned only rarely.

ZALMA OPINION

When dealing with attempted health insurance provider fraud resolution of discovery issues often resolves the entire case seeking damages for fraud or alleging RICO violations. The District Judge affirmed the Magistrate Judge’s ruling and limited the use of comparator billing as a defense to the claim of fraud.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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00:09:59
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December 30, 2025
Montana Lawyer Commits Insurance Fraud and Receives Minimal Punishment

Montana County Attorney Admits to Insurance Fraud & Is Only Suspended from Practice for 60 Days
Post 5251

Read the full article at https://lnkd.in/gnBaCjmv, see the video at https://lnkd.in/gfpVsyAd and at https://lnkd.in/gC73Nd8z, and at https://zalma.com/blog plus more than 5250 posts.

A Lawyer Who Commits Insurance Fraud and Pleas to a Lower Charge Only Suspended

In The Matter Of: Naomi R. Leisz, Attorney at Law, No. PR 25-0150, Supreme Court of Montana (December 23, 2025) the Montana Office of Disciplinary Counsel (ODC) filed a formal disciplinary complaint with the Commission on Practice (Commission) against Montana attorney Naomi R. Leisz.

On September 25, 2025, Leisz tendered a conditional admission and affidavit of consent. Leisz acknowledged the material facts of the complaint were true and she had violated the Montana Rules of Professional Conduct as alleged by ODC.

ADMISSIONS

Leisz admitted that in April 2022, her minor son was involved in a car accident in which he hit a power pole. Leisz’s son ...

00:08:27
December 30, 2025
Montana Lawyer Commits Insurance Fraud and Receives Minimal Punishment

Montana County Attorney Admits to Insurance Fraud & Is Only Suspended from Practice for 60 Days
Post 5251

Read the full article at https://lnkd.in/gnBaCjmv, see the video at https://lnkd.in/gfpVsyAd and at https://lnkd.in/gC73Nd8z, and at https://zalma.com/blog plus more than 5250 posts.

A Lawyer Who Commits Insurance Fraud and Pleas to a Lower Charge Only Suspended

In The Matter Of: Naomi R. Leisz, Attorney at Law, No. PR 25-0150, Supreme Court of Montana (December 23, 2025) the Montana Office of Disciplinary Counsel (ODC) filed a formal disciplinary complaint with the Commission on Practice (Commission) against Montana attorney Naomi R. Leisz.

On September 25, 2025, Leisz tendered a conditional admission and affidavit of consent. Leisz acknowledged the material facts of the complaint were true and she had violated the Montana Rules of Professional Conduct as alleged by ODC.

ADMISSIONS

Leisz admitted that in April 2022, her minor son was involved in a car accident in which he hit a power pole. Leisz’s son ...

00:08:27
December 26, 2025
Liability Insurance only Responds to Fortuitous Acts

Insurer’s Exclusion for Claims of Assault & Battery is Effective
Post 5250

Read the full article at https://lnkd.in/gBzt2vw9, see the video at https://lnkd.in/gEBBE-e6 and at https://lnkd.in/gk7EcVn9, and at https://zalma.com/blog plus more than 5250 posts.

Bar Fight With Security is an Excluded Assault & Battery

In The Cincinnati Specialty Underwriters Insurance Company v. Mainline Private Security, LLC, et al., Civil Action No. 24-3871, United States District Court, E.D. Pennsylvania (December 16, 2025) two violent attacks occurred in Philadelphia involving young men, Eric Pope (who died) and Rishabh Abhyankar (who suffered catastrophic injuries). Both incidents involved security guards provided by Mainline Private Security, LLC (“Mainline”) at local bars. The estates of the victims sued the attackers, the bars, and Mainline for negligence and assault/battery. The insurer exhausted a special limit and then denied defense or indemnity to Mainline Private Security.

INSURANCE COVERAGE

Mainline had purchased a commercial ...

00:08:42
December 31, 2025
“Sudden” is the Opposite of “Gradual”

Court Must Follow Judicial Precedent
Post 5252

Read the full article at https://www.linkedin.com/pulse/sudden-opposite-gradual-barry-zalma-esq-cfe-h7qmc, see the video at and at and at https://zalma.com/blog plus more than 5250 posts.

Insurance Policy Interpretation Requires Application of the Judicial Construction Doctrine

In Montrose Chemical Corporation Of California v. The Superior Court Of Los Angeles County, Canadian Universal Insurance Company, Inc., et al., B335073, Court of Appeal, 337 Cal.Rptr.3d 222 (9/30/2025) the Court of Appeal refused to allow extrinsic evidence to interpret the word “sudden” in qualified pollution exclusions (QPEs) as including gradual but unexpected pollution. The court held that, under controlling California appellate precedent, the term “sudden” in these standard-form exclusions unambiguously includes a temporal element (abruptness) and cannot reasonably be construed to mean ...

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December 29, 2025
Doctor Accused of Insurance Fraud Sues Insurer Who Accused Him

Lack of Jurisdiction Defeats Suit for Defamation

Post 5250

Posted on December 29, 2025 by Barry Zalma

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He Who Represents Himself in a Lawsuit has a Fool for a Client

In Pankaj Merchia v. United Healthcare Services, Inc., Civil Action No. 24-2700 (RC), United States District Court, District of Columbia (December 22, 2025)

FACTUAL BACKGROUND
Parties & Claims:

The plaintiff, Pankaj Merchia, is a physician, scientist, engineer, and entrepreneur, proceeding pro se. Merchia sued United Healthcare Services, Inc., a Minnesota-based medical insurance company, for defamation and related claims. The core allegation is that United Healthcare falsely accused Merchia of healthcare fraud, which led to his indictment and arrest in Massachusetts, causing reputational and business harm in the District of Columbia and nationwide.

Underlying Events:

The alleged defamation occurred when United ...

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December 15, 2025
Zalma’s Insurance Fraud Letter – December 15, 2025

Zalma’s Insurance Fraud Letter

Read the full article at https://lnkd.in/dG829BF6; see the video at https://lnkd.in/dyCggZMZ and at https://lnkd.in/d6a9QdDd.

ZIFL Volume 29, Issue 24

Subscribe to the e-mail Version of ZIFL, it’s Free! https://visitor.r20.constantcontact.com/manage/optin?v=001Gb86hroKqEYVdo-PWnMUkcitKvwMc3HNWiyrn6jw8ERzpnmgU_oNjTrm1U1YGZ7_ay4AZ7_mCLQBKsXokYWFyD_Xo_zMFYUMovVTCgTAs7liC1eR4LsDBrk2zBNDMBPp7Bq0VeAA-SNvk6xgrgl8dNR0BjCMTm_gE7bAycDEHwRXFAoyVjSABkXPPaG2Jb3SEvkeZXRXPDs%3D

Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/

Zalma’s Insurance Fraud Letter

Merry Christmas & Happy Hannukah

Read the following Articles from the December 15, 2025 issue:

Read the full 19 page issue of ZIFL at ...

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