Allegheny Health Network Sues Insurer for COVID-19 Losses

Allegheny Health Network is suing its insurer for breach of contract over ‘catastrophic’ losses sustained during the shutdown of nonemergency medical services last year.

AHN and dozens of hospitals, physician practices and surgical affiliates filed the four-count civil lawsuit in the Court of Common Pleas of Allegheny County against Schaumburg, Ill.-based American Guarantee and Liability Insurance Co.

The lawsuit alleges American Guarantee has refused to pay more than $100,000 for losses ‘well in excess of $250,000’ resulting from Gov. Tom Wolf’s order to shut down nonemergency surgical, medical imaging and other tests last year to slow the spread of the virus that causes COVID-19.

The lawsuit was filed in June. A hearing on AHN’s motion to move the case to the court’s Commerce and Complex Litigation Center is scheduled for Thursday.