South Peninsula Hospital v. Xerox State Healthcare, LLC

NO. 3:15-CV-00177-JMK

United States District Court for the District of Alaska

Frequently Asked Questions

  1. Basic Information

  2. Why did I get this Notice of Proposed Class Action Settlement?

    You received a Notice because you are likely a “Settlement Class Member” meaning that you were an Alaska Medicaid authorized billing provider who: submitted a valid Medicaid claim via or to be processed by Health Enterprise during the period from October 1, 2013 through and including December 31, 2016. For the avoidance of doubt, this includes claims for Medicaid reimbursable services arising on or before December 31, 2016, even if such claims for payment were submitted for payment via or to be processed by Health Enterprise after December 31, 2016.

    You may be eligible to receive a cash payment if you submit a Claim Form to the Settlement Administrator in the Notice.

    The United States District Court for the District of Alaska, the federal court overseeing the Litigation, authorized a Notice to inform you about the Settlement and your options before it decides whether to grant final approval of the Settlement.

    The Plaintiff in this lawsuit is South Peninsula Hospital. The company it sued, Xerox State Healthcare, LLC, n/k/a Conduent State Healthcare, LLC, is the Defendant.

  3. What is this lawsuit about?

    Plaintiff South Peninsula Hospital alleges that Alaska Medicaid authorized billing providers suffered economic harm due to the late reimbursement of Medicaid reimbursable services and costs spent in following up on those late reimbursements, because of the conduct of Conduent in designing, developing, and implementing Health Enterprise as a Medicaid claims processing system on the Go-Live date, and because of Conduent making misrepresentations to the State of Alaska about Health Enterprise’s readiness to operate properly, in violation of the Alaska Unfair Trade Practice and Consumer Protection Act, Alaska Stat. § 45.50.471. Conduent vigorously denies Plaintiff’s claims in their entirety. Both parties have agreed to this Settlement and the terms of the Settlement are summarized in the Notice. The full Settlement Agreement is on the IMPORTANT DOCUMENTS page.

  4. What is a class action?

    In a class action, the Plaintiff acts as the “class representative” and files a lawsuit individually and on behalf of other people who have similar claims. This group of people is called the “class” and the people in the class are the “class members.” One court resolves the contested issues in the lawsuit for all class members, except for people who exclude themselves from the class. In this case, the presiding judge is the Honorable Judge Joshua M. Kindred of the United States District Court for the District of Alaska (the federal court in Anchorage, Alaska).

  5. Why is there a Settlement?

    The Court did not decide in favor of Plaintiff South Peninsula Hospital or Conduent. Over nearly five years, the Parties took significant discovery, retained experts, engaged in motion practice, and participated in mediation overseen by an experienced mediator. The Settlement avoids the costs and risks of continued litigation and a trial and provides certain compensation for Settlement Class Members without the delay and uncertainty of trial. Plaintiff South Peninsula Hospital and its counsel believe the Settlement is in the best interests of the Settlement Class Members.

  6. Who is in the Settlement

  7. Who is in the Settlement?

    You are a Settlement Class Member if you are an Alaska Medicaid authorized billing provider that actually submitted a Medicaid claim via or to be processed by Health Enterprise during the period from October 1, 2013 through and including December 31, 2016. For the avoidance of doubt, this includes claims for Medicaid reimbursable services arising on or before December 31, 2016, even if such claims for payment were submitted for payment via or to be processed by Health Enterprise after December 31, 2016. Settlement Class Members are eligible for payment by attesting in the attached Claim Form that they are a Settlement Class Member that suffered economic harm related to un-timely Medicaid reimbursements, including loss of the time use of money and/or consequential damages related to time and costs spent to follow up on the late reimbursements.

  8. What should I do if I am still not sure whether I am included as a Settlement Class Member?

    If you received this Notice by direct mail, then Conduent’s records indicate that you are a Settlement Class Member. If you are not sure whether you are included in the Settlement Class, you can ask for free help by emailing the Settlement Administrator at info@HealthProviderSettlement.com or calling the Settlement Administrator at (855) 201-9818 for more information.

  9. The Settlement Benefits

  10. What benefits does the Settlement provide?

    Under the Settlement, Conduent agreed to create a Settlement Fund of Six Million and Seven Hundred Fifty Thousand Dollars ($6,750,000) from which to pay, subject to the Court’s approval: (a) any attorneys’ fees and expenses to Class Counsel; (b) any service award to the Plaintiff South Peninsula Hospital as the class representative; and (c) any notice and administration costs. The Settlement Fund after deductions for these items is referred to as the Net Settlement Fund which will be used to make cash payments to Settlement Class Members who submit Claim Forms. To receive a payment, you must submit a Claim Form on or before February 10, 2021. You can submit a claim on this Settlement Website at the SUBMIT A CLAIM page, or you can submit your claim by email to info@HealthProviderSettlement.com, or by U.S. mail to Health Provider Class Action, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.

  11. Who can get money from the Settlement, and how much?

    If you are a Settlement Class Member that attests under oath in a timely and validly submitted Claim Form that you suffered economic harm related to one or more untimely Medicaid reimbursements for claims submitted from October 1, 2013 through and including December 31, 2016 (or after December 31, 2016, for claims that arose on or before December 31, 2016), including loss of the time use of money and consequential damages related to time and costs spent by you to follow up on the untimely reimbursement(s), you will receive cash compensation based on the following formula:

    Authorized Claimants shall receive a pro rata payment from the Net Settlement Fund in proportion to the total amount of their respective Class Period Reimbursements as compared with the other Authorized Claimants; however, Authorized Claimants shall not receive less than $300.

    Authorized Claimants are Settlement Class Members who do not request exclusion from the Settlement by timely opting out, and who timely submit a valid Claim Form to the Settlement Administrator, and that are approved by the Settlement Administrator.

    Class Period Reimbursements are the total Medicaid billing reimbursements received by a Settlement Class Member for claims submitted via or to be processed by Health Enterprise during the period from October 1, 2013 through December 31, 2016, including claims arising on or before December 31, 2016, if such claims for payment were submitted for payment via or to be processed by Health Enterprise after December 31, 2016.

    In short, payments to Authorized Claimants will be made from the Net Settlement Fund pro rata (that is, proportionately) based on the total Medicaid billing reimbursements they each received during the relevant time period.

    For information on how to submit a claim, please refer to FAQ 10 below.

  12. What claims am I releasing if I stay in the Settlement Class?

    Unless you exclude yourself from the Settlement (see FAQ 16), you cannot sue, continue to sue, or be part of any other lawsuit against Conduent concerning or relating in any way to Medicaid claims submitted via or to be processed by Health Enterprise for reimbursement by the State of Alaska during the time period from October 1, 2013 through December 31, 2016 (or even after December 31, 2016, for claims that arose on or before December 31, 2016). The “Release of Claims” section in the Settlement Agreement describes the legal claims that you release if you remain in the Settlement Class. Importantly, the Released Claims do not include a release of Conduent related to any Medicaid claims you submitted that were either reduced, denied, or recouped and that were, are or may in the future be subject to appeal by you pursuant to the State of Alaska’s Medicaid administrative appeals process. The Settlement Agreement and the terms of the “Release of Claims” is on the IMPORTANT DOCUMENTS page.

  13. How to get a Payment — Making a Claim

  14. How do I submit a claim and get a cash payment?

    To be eligible to receive a cash payment from this Settlement you must complete and submit a valid and timely Claim. There are three (3) ways to do so. Your Claim Form may be submitted:

    1. online at the SUBMIT A CLAIM page by following the instructions on submitting a Claim;
    2. by email to the Settlement Administrator using the email address info@HealthProviderSettlement.com; or
    3. by U.S. mail to the Settlement Administrator using the address: Health Provider Class Action, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.

    You can contact the Settlement Administrator to request a Claim Form by email info@HealthProviderSettlement.com, or U.S. mail at Health Provider Class Action, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.

    You are encouraged to complete and submit your Claim as soon as possible if you believe you are entitled to a payment under the Settlement.

  15. What is the deadline for submitting a claim?

    Claims must be submitted electronically or postmarked no later than February 10, 2021.

  16. When will I get my payment?

    The Court will hold a Final Approval Hearing on February 24, 2021, to decide whether to approve the Settlement. Updates about when payments will be made will be posted at www.HealthProviderSettlement.com.

  17. The Lawyers Representing You

  18. Do I have a lawyer in the case?

    Yes. The Court appointed the attorneys below to represent you and the Settlement Class. These attorneys are called Class Counsel. You will not be charged for their services.

    Shanon J. Carson
    Peter R. Kahana
    Lane L. Vines
    Yechiel M. Twersky
    Berger Montague PC
    1818 Market Street, Suite 3600
    Philadelphia, PA 19103
    Telephone: (215) 875-3000
    Email: HealthProviderSettlement@bm.net

  19. Should I get my own lawyer?

    You do not need to hire your own lawyer because Class Counsel works for you. If you want your own lawyer, you may hire one but you are responsible for paying that lawyer.

  20. How will the lawyers be paid?

    Class Counsel, who have not been paid for their services in this Litigation since it began almost five years ago, will seek the Court’s approval of up to one-third of the Settlement Fund ($2,250,000) in attorneys’ fees and up to $1,100,000 as reimbursement for litigation costs that they have already advanced in pursuing the Litigation, to be paid from the Settlement Fund. The fees will compensate Class Counsel for investigating the facts, prosecuting the Litigation, and negotiating and administering the Settlement. Class Counsel will also ask the Court to approve a service award payment of up to $25,000 for the Class Representative South Peninsula Hospital to be paid from the Settlement Fund.

    When Class Counsel’s motion for award of attorneys’ fees, expenses and service award is filed with the Court, it will be posted on the IMPORTANT DOCUMENTS page of the Settlement Website.

  21. Excluding Yourself from the Settlement

  22. How do I opt out of the Settlement?

    If you do not want to receive any benefits from the Settlement, and you want to keep your rights, if any, relating to the legal issues in this case, then you must take steps to exclude yourself from the Settlement Class. This is called “opting out” of the Settlement Class. The deadline for requesting exclusion from the Settlement is January 26, 2021. To opt out, you must mail a letter to the Settlement Administrator at Class Action Opt-Out, Health Provider Class Action, P.O. Box 58220, Philadelphia, PA 19102 that includes the following:

    • Your printed name, address, telephone number, and email address;
    • A statement that “I wish to exclude myself from the Settlement Class in the Health Provider Class Action Settlement” (or substantially similar clear and unambiguous language); and
    • Your actual written signature.

    If you opt out of the Settlement, you will not have any rights as a Settlement Class Member under the Settlement; you will not receive any payment under the Settlement; you will not be bound by any further orders or judgments in the Litigation; and you will keep the rights, if any, you have with respect to this matter.

  23. Commenting on or Objecting to the Settlement

  24. How do I tell the Court if I object to the Settlement (or like the Settlement)?

    If you are a Settlement Class Member and do not opt out of the Settlement, you can comment on the Settlement or submit an objection. You cannot ask the Court to order a larger or different settlement; the Court can only approve or deny the Settlement that is before the Court. If the Court denies final approval of the Settlement, there will be no payments and the case will continue. If you want to object to the Settlement, you must do so in writing.

    To object, you must timely mail a statement to the Settlement Administrator stating that you object to the Settlement in South Peninsula Hospital v. Xerox State Healthcare, LLC, n/k/a Conduent State Healthcare, LLC, No. 3:15-cv-00177-JMK (D. Alaska), and your objection must include:

    • Your printed name, address, telephone number, and email address;
    • Accompanying evidence demonstrating that you are a Settlement Class Member;
    • A detailed statement stating the objection(s) and the specific aspect(s) of the Settlement being challenged; the specific reason(s), if any, for each such objection, and including any evidence and legal authority in support of the objection(s);
    • Any other supporting papers, materials, or briefs that the Settlement Class Member wishes the Court to consider when reviewing the objection;
    • A statement of whether you and/or your lawyer intend to appear at the Final Approval Hearing; and
    • Your written signature.

    To be valid, you must mail your objection by U.S. Mail and it must be postmarked no later than January 26, 2021 to Health Provider Class Action, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.

  25. What is the difference between objecting and excluding?

    Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Settlement. Excluding yourself from the Settlement is opting out and telling the Court that you do not want to be part of the Settlement. If you opt out of the Settlement, you cannot object to it because it no longer affects you. You cannot both opt out and object to the Settlement. Any statement or submission purporting or appearing to be both an objection and opt-out shall be treated as a request for exclusion.

  26. The Court's Final Approval Hearing

  27. When is the Court’s Final Approval Hearing?

    The Court will hold a Final Approval Hearing at 9:00 a.m. on February 24, 2021, at the James M. Fitzgerald U.S. Courthouse and Federal Building at 222 West 7th Avenue, in virtual Courtroom 1, Anchorage, AK 99513. At the Final Approval Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will also consider Class Counsel’s motion for attorneys’ fees, expenses, and service award.

    Due to COVID-19, the Court may hold the Final Approval Hearing telephonically or via videoconference. Also, the Court may reschedule the Final Approval Hearing or change any of the deadlines described in this Notice. Be sure to check this Settlement Website for any changes. You can also access the case docket via the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.akd.uscourts.gov.

  28. Do I have to come to the Final Approval Hearing?

    No. Class Counsel will answer any questions the Court may have. You may attend at your own expense if you wish. If you send an objection, you do not have to come to the Final Approval Hearing to talk about it. If you mailed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary.

  29. If You Do Nothing

  30. What happens if I do nothing at all?

    If you do nothing, you will receive no money from this Settlement, and you will give up your legal remedies for the conduct alleged in this case.

  31. Getting More Information

  32. Are more details about the Settlement available?

    Yes. The Notice summarizes the proposed Settlement Agreement and both are available to view on the IMPORTANT DOCUMENTS page or by accessing the docket through the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.akd.uscourts.gov, or, subject to COVID-19 closures, by visiting the office of the Clerk of the Court for the United States District Court for District of Alaska, James M. Fitzgerald U.S. Courthouse and Federal Building at 222 West 7th Avenue, Room 229, Box/Suite #4, Anchorage, AK 99513 between 8:00 a.m. and 4:30 p.m., Monday through Friday, excluding court holidays.

    PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.

  33. How do I get more information?

    This Settlement Website contains all relevant information about the Settlement, as well as all relevant documents such as the Settlement Agreement and Claim Form. You can also call the Settlement Administrator toll free at (855) 201-9818, email to info@HealthProviderSettlement.com, or write to Health Provider Class Action, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.

    You can also request assistance from Class Counsel using the contact information set forth above.