LifeWatch (SWX:LIFE) said today that an arbitrator from the Interanational Centre for Dispute Resolution ruled against the firm and in favor of Highmark Blue Cross Blue Shield to the tune of $18.7 million.
The decision was in relation to a payment for ACT elemetry monitoring services, LifeWatch said. The arbitrator in the case found LifeWatch liable for damages for the years 2009-2010 in the approximate amount of $18.7 million plus 6% per annum simple pre-judement interest from January 2013.
“The arbitrator’s verdict is surprising, and extremely disappointing. That said, while our lawyers vigorously pursue all our legal options, the company itself remains fully focused on its mission to provide high quality services to all patients, bring to market our new technologies and strengthening its position as an innovational leader in digital health. As reported on March 17, 2016, the underlying operational health of the company is strong,” CEO Dr. Stephan Rietiker said in a press release.
The company said the amount will be reduced by approximately $700,000 in offsets which Highmark has taken each time LifeWatch provided its services to the insurer for the past several years.
LifeWatch said it believes the arbitrator “ignored key facts” and that “an injustice has occurred” and said it will take steps to “vigorously pursue all post-arbitration options,” including vacating the arbitration award and seeking recourse through an antitrust matter it has pending against Highmark and other BCBS entities.
