Lawsuit Claims Hospital Refused to Bill Medicaid, Chasing Car Accident Settlement Instead

A lawsuit filed in Clark County District Court accuses two major healthcare entities – Dignity Health and Emerus Holdings – of refusing to bill Medicaid for a patient’s treatment in order to pursue a larger payout from a car accident settlement. Attorney Al Lasso, representing plaintiff Mohammad Nyazi, claims the refusal amounts to fraud and breach of contract.

According to the complaint, Nyazi sought treatment at Emerus Flamingo in Las Vegas after being injured in a car crash. Despite having Medicaid coverage, he was sent a $17,113 bill in May 2024, and his attorney’s office later received confirmation that the facility had never billed Medicaid. The lawsuit argues that this omission was deliberate, based on the assumption that Nyazi’s personal injury claim would yield more money than the state insurance program.

A pattern of allegations against Dignity Health

Lasso has criticized the hospital’s conduct, noting that patients typically expect providers to bill their insurance, not bypass it to maximize profits. “Anybody could walk in there, get treatment, and be told, ‘Oh yes, we’re going to bill your insurance.’ Then, next thing you know, you’re hit with a bill for thousands of dollars,” he told reporters.

After inquiries from the media, an attorney for Dignity Health informed Lasso on July 23 that they would submit the bill to Medicaid. However, neither Dignity Health nor Emerus Holdings has officially commented on the lawsuit or filed a response.

This case follows a similar lawsuit filed last year by Ronald McKean, who accused Dignity Health’s St. Rose Dominican Hospital – De Lima Campus of failing to bill Medicare after a 2022 car accident. McKean’s medical account, totaling over $67,000, was allegedly sent to collections. While Dignity denied wrongdoing in court, records show the hospital ultimately settled with McKean.

Fighting to hold hospitals accountable

Lasso believes these cases reflect a broader problem in how hospitals handle patients with injury-related claims. “If [Nyazi] had gone in for anything other than a motor vehicle crash, they would have definitely billed his insurance company, in my opinion,” he said.

Dignity and Emerus, according to the lawsuit, maintain that their billing practices comply with federal and state laws by “pursuing third-party liability” for payment. This approach often involves seeking reimbursement from auto accident settlements or lawsuits before billing health insurance. However, critics argue that patients like Nyazi – who received a gross settlement of $25,000 from the at-fault driver – are left vulnerable when healthcare providers bypass coverage and demand direct payment.

The lawsuit raises important questions about patient rights, hospital billing practices, and transparency. Medicaid is designed to protect low-income patients from overwhelming medical costs, yet patients may find themselves caught between hospitals and insurers seeking maximum recovery.

If you’ve been injured, contact Lasso Injury Law

“This isn’t just about one bill,” said Lasso. “It’s about ensuring that healthcare providers follow the rules and put patient interests first.”

As this case moves forward, it may set a precedent for how Nevada courts address disputes over hospital billing practices and third-party liability.

At Lasso Injury Law, we believe that accident victims shouldn’t be exploited by hospitals looking to profit from their legal claims. If you’ve received an unexpected medical bill after a crash, or believe your insurance was ignored, we can help.