Quorum insurance lawsuit moved here from New Mexico

Complaint centers on malpractice coverage for rogue doctor's procedures performed at hospital under CHS unit's management

A lawsuit recently relocated to Nashville pits Quorum Health Resources against a pair of its insurers over malpractice claims made by a rogue doctor.

According to the complaint, a number of botched procedures at Gerald Champion Regional Medical Center in Alamogordo, N.M., spawned more than 50 malpractice claims against physician Christian Schlicht, in which the facility’s manager, Quorum, was named as a co-defendant.

Schlicht allegedly held himself out to be a neurosurgeon, which he apparently wasn’t, and performed a number of procedures called “percutaneous disc arthroplasty” causing patients to suffer post-procedure complications ranging from pain to paralysis. According to Quorum’s lawsuit, which was initially filed in New Mexico in May of last year, the Brentwood-based company was carrying insurance against this possibility. These policies were held with the two named defendants; Lexington Insurance and Ironshore Specialty Insurance.

The lawsuit was earlier this week moved from New Mexico to the Middle District of Tennessee. In it, Quorum, a subsidiary of Community Health Systems, alleges that — despite the coverage — Lexington and Ironshore have refused to pay these claims.

The answers from both insurers assert that they are not liable for those claims due to, among other things, the fact that Schlicht, given his lack of proper credentials, should not have been allowed to perform the procedures he allegedly botched.

NashvillePost.com contacted attorneys from both sides of the dispute but had not heard back at the time of publication.