Bay Area Regional Medical Center sued over claims of mismanagement of funds

By Leigh Frillici - Reporter
KPRC2

HOUSTON - ESA Toxicology has filed a lawsuit against Bay Area Regional Medical Center, also known as BARMC, claiming mismanagement of funds.

The lawsuit states BARMC contracted with ESA Toxicology for lab services for DNA genetic specimens and urine toxicology specimens.

READ: Bay Area Regional Medical Center in Webster to close, file for bankruptcy

The lab claims it did not know BARMC’s contract with Aetna and Cigna prohibits BARMC from outsourcing lab services.

Aetna sent a letter saying BARMC owes Aetna $26 million for improperly billing the insurance company.

Cigna claims BARMC owes it $16 million for the same reason.

The lab also claims BARMC stopped paying it in full back in 2016.

ESA Toxicology states BARMC sent a letter to the lab asking for indemnity against or protection from the two insurance companies' claims.

That is what the suit is based on.

ESA claims that any overbilling would have been the fault of BARMC, and BARMC should be responsible for it.

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