Echo Health Sues 4M Healthcare Over Billing Issue

On Thursday a case was filed in the District of Kansas by Echo Health Inc. against 4M Healthcare LLC. The case is regarding recovery of improperly paid charges and conversion of funds.

The complaint said Echo Health Inc. is a claim processor contracted to work with third party administrators in the process of paying medical bills from self-insured plans. When Echo pays bills, the payments are tied to a particular medical provider’s Tax ID number to ensure that the payments are sent to the right entity.

4M was a healthcare provider that was enrolled to receive payments from Echo Health and previously had received payments for small bills. Echo Health experienced a clerical mapping error where the Tax ID number for another medical provider  was concatenated with the Tax ID number for 4M Health and 4M Health mistakenly received payments in the amount of $544,412.97 intended for that other provider. Plaintiff has requested return of the mistaken funds, but defendant engaged counsel and has not returned the payment.

The plaintiff is suing for unjust enrichment and conversion. They are represented by Baker Sterchi Cowden & Rice and Frantz Ward LLP.