Columbia Ordered to Preserve Documents

A federal judge has ordered Columbia/HCA Healthcare Corp. not to destroy any documents or computer records in connection with a private insurer’s lawsuit against the company. U.S. District Judge David Folsom signed the temporary restraining order, requested by Operating Engineers Union Local 312 Health and Welfare Fund, on Aug. 27, court officials in Texarkana, Texas, said. The self-insurer sued in early August for alleged overbilling, amid a wide government probe of Columbia’s Medicare billing practices. Mitchell Toups, an attorney for the insurer, said, without elaborating, that there was “reason to believe” documents had been destroyed. He said similar allegations had been made in connection with the government’s probe of the Nashville-based company. Columbia spokesman Jeff Prescott said the company hoped no such destruction had occurred and was laboring to preserve any documents relevant to the probe and its own internal review. Meanwhile, Columbia said it has cut its acquisition staff in half, pulling back amid the government probe. Columbia shares rose 63 cents to close at $32.19 on the NYSE.