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Psychiatrist sues Prospect Medical over alleged insurance fraud, in CT case underway this week

Manchester Memorial Hospital is owned by Prospect Medical Holdings, a for profit company based in California.
Tyler Russell
/
Connecticut Public
Manchester Memorial Hospital is owned by Prospect Medical Holdings, a for profit company based in California.

A former high-ranking doctor at Manchester Memorial Hospital is suing the hospital’s owner, Prospect Medical Holdings, over alleged insurance fraud.

Dr. Lawrence Peacock, vice chair at the department of psychiatry at Eastern Connecticut Health Network, which runs Manchester Memorial, alleged in a lawsuit filed in state court that the hospital failed to discharge patients after treatment was completed.

The trial began this week in Hartford, according to Peacock and his lawyer Theodore W. Heiser of Suisman Shapiro.

In his lawsuit, Peacock claims the hospital kept patients for longer than required so it could continue to bill insurance companies.

Nina Kruse, a hospital spokeswoman, said Manchester Memorial does not comment on pending litigation.

The filing is the latest in a series of troubles at Prospect-owned Medical facilities in Connecticut. The California-based firm is in a messy $435 million sale to Yale-New Haven Health after Yale sued Prospect to back out of the deal.

Learn more 

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Pattern of alleged abuse emerges following state inspections at 2 Prospect-owned CT hospitals

Staffing problems persist at Prospect-owned Waterbury Hospital, union leader says

Sujata Srinivasan is Connecticut Public Radio’s senior health reporter. Prior to that, she was a senior producer for Where We Live, a newsroom editor, and from 2010-2014, a business reporter for the station.

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