Michigan Court of Appeals; Docket #336244; Unpublished
Judges Gadola, Kelly, and Riordan; per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion
STATUTORY INDEXING:
TOPICAL INDEXING:
Medical Provider Standing (Post-Covenant)
CASE SUMMARY:
In this unanimous per curiam opinion, the Court of Appeals remanded the case for further proceeding, without prejudice, to establish if Plaintiff Spectrum Health Hospitals (“Spectrum”) could establish an alternate basis to establish standing. The Court remanded the case because it the Michigan Supreme Court had abolished a medical provider’s independent statutory cause of action in Covenant Med Ctr, Inc v State Farm Mut Auto Ins Co, 500 Mich 191; 895 NW2d 490 (2017) and the case applied retroactively to cases on appeal.
Initially, Defendant Farm Bureau Mutual Insurance Company (“Farm Bureau”), had been ordered to pay Spectrum $395,229.85 for charges it had refused to pay. Farm Bureau appealed on a number of evidentiary issues. However, during the pendency of the appeal, the Michigan Supreme Court decided Covenant, and the Court of Appeals determined that the decision applied retroactively.
The Court remanded the case to see if Spectrum could establish standing. Covenant abolished the independent statutory cause of action for medical providers. The Court had also previously ruled that Covenant applied to cases on appeal. Because Spectrum was bringing an independent cause of action, the Court found that Covenant would bar its action since it did not have standing. Accordingly, the Court remanded the case to see if Spectrum could establish standing.
“Before our Supreme Court’s decision in Covenant, this Court had specifically held that the language of MCL 500.3112 permitted a healthcare provider who had provided healthcare services to an insured to maintain a direct cause of action against an insurer to recover PIP benefits under the no-fault act. See Wyoming Chiropractic Health Clinic, PC v Auto-Owners Ins Co, 308 Mich App 389, 401; 864 NW2d 598 (2014), overruled by Covenant Med Ctr, Inc, 500 Mich at 196. In Covenant, however, our Supreme Court held that healthcare providers do not have an independent statutory cause of action against insurers for PIP benefits to recoup the cost of healthcare services provided to insureds.”
Thus, the Court remanded the case, without prejudice, to see if Spectrum could establish standing.
