An American arbitration panel asked Community Health Systems Inc. to return $2.1 million to Quorum Health Corp. for overcharging the company which spun out of the Franklin, Tenn.-based hospital operator in 2016.
The American Arbitration Association also ordered Quorum Health to pay some $1.5 million it was withholding from Community Health, well below the $9.3 million the company was originally seeking.
The companies have been in dispute since August 2017 when Community Health sought the $9.3 million it said were withheld by Quorum Health under two service agreements. Quorum Health had argued it did not need to make the payment since it was not properly billed under the agreements, filing counterclaims of its own against Community Health for being overcharged.
While Community Health Systems announced its decision to terminate both agreements last year, the arbitration panel blocked the move on grounds that it was not a mutual decision. The parties will continue to provide services to each other, though Quorum Health noted it will make reduced payments under one of the contracts but will continue to pay the same in the other.