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Kettering Health Network and CareSource Ordered to Arbitration

Friday, March, 21, 2014



Ohio Second District Court of Appeals Judge Mary Donovan has ordered that a lower court order to send a $4.1 million dispute between Kettering Health Network and CareSource to arbitration be upheld.  The Appeals Court found that the contact between the two companies required arbitration despite the fact that an official grievance process and an attempt at mediation have already failed.

 

Kettering Health provides outpatient services to CareSource in exchange for prevailing Medicare rate payments.  Kettering has accused CareSource of underpaying on several claims.  It first objected to the claims payments in 2008, and filed a lawsuit in 2013.  CareSource claimed that arbitration was required in the matter and the courts agreed, but Kettering sought an appeal.

 

The two companies together employ over 8,500 people in the Dayton, Ohio area and are very closely linked due to the lack of alternative health care providers in the area, meaning they will likely continue to work together despite this dispute.  This explains the lengthy period of complaint and the prior attempts to resolve the issue without recourse to the court system.  Kettering argued that the contract language was not clear enough to compel arbitration in all cases, but both courts have now rejected that argument, making further litigation unlikely unless arbitration also fails.