Medical testing company sues Insight over $300K debt from Trumbull hospitals

A company that provides medical tests and tools to healthcare professionals has filed a lawsuit against Insight Foundation of Trumbull, seeking nearly $300,000 in unpaid expenses for goods and services provided to Trumbull Regional Hospital and Hillside Rehabilitation Hospital. The legal action, filed last week in the U.S. District Court for the Northern District of Ohio by Roche Diagnostics Corporation, comes at a time of significant upheaval for the Trumbull County healthcare landscape, impacted by Insight Foundation's recent struggles.

Insight Foundation, a not-for-profit organization, took over management of Trumbull Regional and Hillside hospitals following a sale of assets from Steward Health Care System during Steward's bankruptcy proceedings.

In late March, both Trumbull Regional and Hillside hospitals abruptly paused almost all inpatient and outpatient services after Steward ceased funding.

The service suspensions were followed by the closure of the emergency department at Insight Hospital & Medical Center Trumbull (formerly Trumbull Regional) and widespread staff furloughs, impacting more than 700 healthcare workers.

Medical Properties Trust (MPT), the holder of the hospital properties, has reportedly made an offer to transfer its real estate to a new operator. The goal is to identify a financially stable entity committed to long-term operation and the restoration of healthcare services in the community.

Roche Diagnostics' lawsuit alleges that Insight Foundation is responsible for $294,646.55 in unpaid invoices. The lawsuit states that Roche had an existing agreement with Steward Health Care for Roche Tissue Diagnostics Products. Following the bankruptcy, Insight Management and Consulting Services, a Michigan-based affiliate of Insight Foundation, informed Roche that Insight would assume responsibility for hospital expenses as of September 11, 2024, according to the lawsuit.

Roche claims it subsequently sent invoices to Insight Foundation for goods and services provided under the original agreement, but these invoices have remained unpaid. The lawsuit includes claims for breach of contract, open book account, account stated, and unjust enrichment. Roche Diagnostics is seeking the outstanding sum, along with interest, court costs, and attorney fees.

Insight has yet to file an answer to Roche’s complaint.