February 2006

ASHP and ASHN prevail in CCA litigation

The San Diego Superior Court entered final judgment on Thursday, January 19, 2006, in favor of American Specialty Health Plans of California, Inc. (ASHP) and American Specialty Health Networks, Inc. (ASHN) on all claims filed against them by the California Chiropractic Association (CCA) in 2001.

With the entry of final judgment, ASHP and ASHN claimed that they have “fully and finally defeated” all of the claims CCA filed against them.

Dr. Kassie Donoghue, CCA president, said, “CCA is disappointed in the trial court’s ruling on the association’s claims against ASHP. However, the matter is far from ‘fully and finally defeated’ as characterized by ASHP. Despite the court’s ruling, CCA firmly believes its claims on behalf of the California chiropractic profession have merit. Accordingly, CCA and its members have reserved their rights to pursue those claims through arbitration. CCA is also considering its appeal options.”

CCA’s complaint originally included 18 causes of action and challenged essentially every feature of ASHP’s and ASHN’s managed-care practices, contending that such activities were unfair, unlawful, and fraudulent. CCA sought millions of dollars in restitution and injunctions that would have shut down many aspects of ASHP’s and ASHN’s business.

Source: American Specialty Health, www.ashcompanies.com; California Chiropractic Association, www.calchiro.org

Industry News from:
Chiropractic News from: