United States District Court, D. Colorado
ORDER DENYING AMERICAN FAMILY'S MOTION TO COMPEL
AND GRANTING WELLS STATES HEALTHCARE'S MOTION FOR
G. EBISCH SPECIAL MASTER
matter is before the Master on the Defendant American Family
Mutual Insurance Company, S.I.'s (“AmFam”)
Motion to Compel non-party Western States Healthcare, n/k/a
Well States Healthcare, LLC (“WSH”) to produce
documents showing the specific amount paid by WSH to the
Plaintiff's, Catherine Bosier's, health care
providers for medical treatment that Ms. Bosier received
relating to the underlying case at issue. Upon review of the
briefs and orders filed by the parties, the transcript of the
December 12, 2018 hearing, the applicable case law, and the
entire docket in this matter, the Master DENIES the Motion to
Compel and GRANTS WSH's concomitant Motion for Protective
Order to prohibit disclosure by WSH of the amounts paid by
WSH to purchase the accounts receivable generated by Ms.
Bosier's health care providers.
Bosier initiated this action in the District Court for Denver
County, Colorado on October 9, 2017, based on the refusal of
AmFam to pay her benefits under her underinsured motorist
coverage (“UIM”) after two separate collisions
with third parties in March, 2014 and April 2015 that
allegedly left her with serious injuries and the prospect of
on-going medical treatment (Complaint, Docket #4). Ms. Bosier
stated that the liability carrier for the at-fault driver in
the first accident paid his policy limits of $100, 000, and
the at-fault driver of the second accident was uninsured. Ms.
Bosier's Complaint centers around her claims that AmFam
failed to pay Ms. Bosier the contract benefits under her UIM
policy, and that it acted unreasonably in handling her
claims. She further alleges that because AmFam engaged in
statutory bad faith in violation of C.R.S. §10-3-1115,
she is entitled to additional statutory damages. AmFam
removed this action to federal court on November 7, 2017,
prior to the expiration of the 30 days provided by 28 U.S.C.
court entered a Scheduling Order in this matter on January
18, 2018 (Scheduling Order, Docket #17). In the Scheduling
Order, the parties stipulated that Ms. Bosier qualified as an
insured under at least one policy with AmFam. At the time of
the entry of the Scheduling Order, Ms. Bosier claimed that
she had incurred medical costs in the amount of $386, 543.00,
and had future medical costs of $1, 341, 231.20, lost earning
capacity and other damages that were yet to be determined. A
ten-day jury trial of this matter is scheduled to take place
beginning on May 6, 2019.
about Wednesday, November 20, 2018, AmFam served a Subpoena
to Produce Documents, Information, or Object or to Permit
Inspection of Premises in a Civil Action
(“Subpoena”) on WSH, a non-party in this case.
AmFam commanded WSH to produce:
All contracts or agreements between Western States Healthcare
[WSH] and Catherine Bosier and/or her attorney Peter M.
Anderson relating to financing health care services on behalf
of Catherine Bosier; all documentation regarding negotiations
with any health care provider, including all amounts billed
by, and all amounts paid to any health care provider on
behalf of Catherine Bosier for medical treatment alleged to
have arisen out of motor vehicle accidents of March 5, 2014
and April 12, 2015, through the present.
Bosier and WSH entered into a contractual agreement (Lien
Agreement and Assignment and Attorney Acknowledgment,
Document #41-1 (“contract”)) which allowed WSH to
purchase the receivables from Ms. Bosier's health care
providers. Ms. Bosier, in turn, assigned her rights of
recovery in this action to WSH up to the amounts billed by
those providers. According to the terms of the contract, Ms.
Bosier is liable to WSH for the total billed amounts, whether
or not Ms. Bosier is successful in this litigation.
amount billed by the health care providers is not the same as
the amount paid by WSH to purchase the accounts receivable
from the health care providers for their services. WSH paid
and pays a discounted amount to Ms. Bosier's medical
providers to purchase these accounts receivable from the
medical providers. WSH produced to the court several examples
of the written agreements that it has entered into with
various medical providers which may provide services to
patients such as Ms. Bosier who are seeking recovery for
injuries while involved in personal injury litigation.
See, e.g., Purchase Agreement for Accounts
Receivable (“Purchase Agreement”)(Document #39-1)
with Ambulatory Surgical Center, LLC; Account Purchase
Agreement (“Purchase Agreement”)(Document #39-3)
with CHER, LLC d/v/a Health Images; Provision of Medical
Services Agreement (“Purchase
Agreement”)(Document #39-4) with ADX, LLC.
contends that it produced, or will produce pursuant to a
protective order between the parties, the above-stated
documents and all documents responsive to AmFam's
Subpoena, except with redactions so that the discounted rate
it pays the providers under these various Purchase Agreements
is not disclosed.
produced a multi-page chart with the current estimate of the
billed charges, or accounts receivable by Ms. Bosier to WSH
(Document #41-2), by CPT code (Current Procedural Terminology
of medical treatment) and date. The chart includes the dollar
amount on the billing invoices for each of Ms. Bosier's
medical treatments, beginning on April 27, 2016.
seeks to discover the actual amount paid by WSH, contending
that the amount paid to each of the medical providers is
relevant to Ms. Bosier's damages in this case. WSH claims
that the amount paid by WSH to medical professionals who
treated Ms. Bosier is a trade secret, is irrelevant and is
protected by the collateral source rule.
not brief the issue in this case. It submitted a two-page
Submission of Brief and Exhibits Pursuant to Court's
December 12, 2018 Order (Document #38), and attached the
brief it filed on October 10, 2018 in Anderson v.
American National Property and Casualty Co., Civil No.
1:17-CV-03016-KMT titled Amended Joint Motion for Protective
Order/Motion to Quash Subpoena and Response to
Defendant's Motion to Compel (“Motion for
Protective Order”). The Motion for Protective Order
addressed the same factual scenario and legal issues present
in this case. WSH also submitted to this court numerous
orders and transcripts of decisions addressing the same
factual scenario and legal issues present here.
January 2, 2019, AmFam filed a Response to Wells State's
Healthcare, LLC's Motion to Quash Subpoena (Document
#41). It similarly submitted numerous orders of decisions
addressing the same factual scenario and legal issues present
here. See Document #44, AmFam's Motion for Leave
to File Supplemental Authority in the Pending ...