Children’s Mercy wins $2 million arbitration for low-income pediatric care

Children’s Mercy Hospital won more than $2 million in an arbitration ruling against two health care companies that were supposed to pay for low-income pediatric care at the hospital.

Alliance For Community Health and Molina Healthcare of Illinois were part of an agreement with Children’s Mercy to help pay for health care services to low-income pediatric patients at the Kansas City hospital. The agreement was first reached in 2008.

Children’s Mercy alleged that the two companies failed to pay for certain claims as well as penalties and interest under the Missouri Prompt Pay Act.

Children’s Mercy’s contract with the two companies, which are affiliated with each other, required arbitration hearings to resolve payment disputes.

Arbitration hearings, unlike court, are held in private. The arbitration in the Children’s Mercy case took place over three days in early May in Kansas City.

On June 30 the three arbitrators — former Jackson County Judge Charles Atwell, Kansas City attorney Tom Bender and Atlanta attorney Hunter Hughes — awarded Children’s Mercy $1.8 million for unpaid invoices. They added $228,430 in attorneys fees for the hospital’s legal team.

Children’s Mercy was represented by James Griffin and Lisa Bolliger of Kansas City law firm Scharnhorst, Ast, Kennard, Griffin.

Arbitration decisions are often confidential, but Children’s Mercy filed papers in federal court in Kansas City on Friday asking a judge to confirm the award because the hospital had not yet been paid by Alliance For Community Health and Molina Healthcare.

Jake Jacobson, director of public relations for Children’s Mercy, said the hospital would not comment on pending litigation.

A spokeswoman with Molina Healthcare did not immediately provide comment.

This story was originally published July 14, 2017 at 5:01 PM with the headline "Children’s Mercy wins $2 million arbitration for low-income pediatric care."