UnitedHealth's headquarters in Minnetonka, Minnesota. (Photo: UnitedHealth)
UnitedHealthcare, the nation’s largest health insurer, is suing the largest U.S. radiology group over alleged abuses under the dispute resolution process in the federal No Surprises Act. The lawsuit, filed in August in a U.S. District Court in Arizona, claims that Radiology Partners has used arbitration as a “vehicle to obtain a windfall for its private equity investors.” The practice, based in El Segundo, CA, employs more than 4,000 radiologists.
“Radiology Partners continues to exploit the No Surprises Act’s independent dispute resolution process by submitting thousands of ineligible claims -- claims that were never intended to qualify under the law,” UnitedHealthcare said in a statement sent to the industry publication Radiology Business. “This pattern of bad behavior not only undermines the integrity of the IDR system but also drives up health care costs for everyone. We are committed to protecting our members and customers from harmful practices by a small number of private equity-backed providers.”
Radiology Partners acquired multiple Arizona practices several years ago, including Scottsdale Medical Imaging and Sun City Imaging, that held contracts with UnitedHealthcare, according to the complaint. In 2019, the company formed Red Rock Imaging Associates (later renamed Sonoran Radiology) and obtained separate billing credentials. UnitedHealthcare alleges that, beginning in 2021, services performed by physicians at acquired in-network groups were billed under Sonoran’s out-of-network tax ID, and the claims then were challenged after the No Surprises Act took effect.
Radiology Partners denies the allegations, which are similar to those in an ongoing dispute with Aetna.
“This is yet another example of a broader and troubling trend: When payers lose in the federal No Surprises Act arbitration process, they turn to litigation,” a company spokesperson said. “UHC’s complaint misrepresents the facts and distracts attention from its repeated failures to pay health care professionals despite federal protections.”
The plaintiffs asked the court to overturn past arbitration awards, recover damages and declare that UnitedHealthcare is not required to pay Sonoran for services performed by physicians at other Radiology Partners groups. This is not UnitedHealthcare’s first legal action against Radiology Partners. In 2024, an arbitration panel vacated a $134 million judgment that had previously been awarded to the radiology group.
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