Air Methods, LLC

Air Methods, LLC, a healthcare provider based in Nevada, experienced a significant data breach reported on January 12, 2024, affecting 34,016 individuals. This breach involved unsecured protected health information, highlighting the vulnerability of sensitive patient data in the healthcare sector[1][7].

In addition to this breach, Air Methods has faced various challenges and legal issues in recent years. The company filed for Chapter 11 bankruptcy protection on October 24, 2023, due to struggles with a changing regulatory environment and higher interest rates. This filing was part of a restructuring effort to cut debt by $1.7 billion, with first-lien lenders committing to provide $80 million in new funds[4].

Legal challenges have also been a significant concern for Air Methods. The company has been involved in class action lawsuits related to wage and hour laws, with a settlement of approximately $78 million approved to compensate helicopter workers for unpaid overtime and other wage violations[8]. Another class action lawsuit accused Air Methods of price gouging in air transport services, alleging that the company charged exorbitant fees for medical evacuation helicopter services, significantly higher than the actual cost of providing care[9].

Furthermore, Air Methods has been subject to legal scrutiny for its billing practices. A lawsuit filed in Massachusetts by Mark Murphy, on behalf of a class of similarly situated individuals, challenged the company’s practice of charging patients for emergency medical air transportation rates when no express or implied-in-fact contract exists between the patient and the company. The lawsuit seeks a declaration of rights, obligations, and relationships relating to the defendants’ claimed entitlement to payment for its emergency air transportation services[11].

These incidents and legal challenges underscore the complexities and risks associated with the operation of air medical services, including issues related to patient data security, regulatory compliance, financial stability, and ethical billing practices.

Citations:

1. https://ocrportal.hhs.gov/ocr/breach/breach_report.jsf?adobe_mc=MCMID%3D02408406485458979789220680779370557994%7CMCORGID%3DA8833BC75245AF9E0A490D4D%2540AdobeOrg%7CTS%3D1696377600
2. https://www.dol.gov/newsroom/releases?agency=All&page=428&state=All&topic=All&year=all
3. https://cybersecurityventures.com/intrusion-daily-cyber-threat-alert/
4. https://www.bloomberg.com/news/articles/2023-10-24/air-methods-files-bankruptcy-after-rates-regulation-hit-profits
5. https://www.countyofmerced.com/DocumentCenter/View/23168/2019381-Air-Methods-executed-expores-09-30-2022
6. https://topclassactions.com/lawsuit-settlements/money/surprise-bills/air-ambulance-trip-led-to-65k-balance-billing-charge-says-veterans-class-action-lawsuit/
7. https://www.vicislaw.com/hhs-breach-tracker
8. https://topclassactions.com/lawsuit-settlements/lawsuit-news/judge-approves-78m-air-methods-class-action-settlement/
9. https://topclassactions.com/lawsuit-settlements/lawsuit-news/air-methods-class-action-alleges-price-gouging-air-transport/
10. https://bankruptcy-proxy-api.dowjones.ai/cases/Texas_Southern_Bankruptcy_Court/9–23-bk-90886/Air_Methods_Corporation_and_ASP_AMC_Holdings_Inc/docs/22.pdf
11. https://www.classaction.org/media/murphy-v-air-methods-corporation-et-al.pdf
12. https://www.dol.gov/newsroom/releases?page=424
13. https://document.epiq11.com/document/getdocumentsbydocket/?docketId=1033980&docketNumber=5&projectCode=AMH&source=DM