Mid-Atlantic Health Law TOPICS

Medical Record Preparation Fees: Did you know that, on July 10, 2025, the Maryland Supreme Court, in Hollabaugh v. MRO Corp., unanimously ruled that Maryland’s Confidentiality of Medical Records Act does not allow a health care provider to charge a $22.88 “preparation fee” for a medical records search that does not result in any records being retrieved and prepared for the requesting party?

Director Indemnification: Did you know that the Maryland Supreme Court, on July 23, 2025, in Hyperheal Hyperbarics, Inc. v. Shapiro, held that a corporation director who was also an employee of the corporation was entitled to recover the attorneys’ fees he incurred in defending the corporation’s unsuccessful suit against him for allegedly engaging in misconduct to increase the company’s profits? The court had no difficulty finding that the factual allegations and legal theories on which the corporation predicated its claims against the employee also implicated his role and status as a director, and, therefore, the indemnification required under Maryland corporate law applies when a director is sued by reason of his service as a director.

Nursing Home Staffing: Did You Know that a rule implemented under the Biden Administration requiring nursing homes that accept Medicare and Medicaid patients to have registered nurses on site twenty-four hours per day, seven days per week, was vacated on June 18, 2025, in Kansas v. Kennedy? Also vacated was the rule’s requirement that such nursing homes must implement minimums of total nurse staffing hours per resident day. The court reached its conclusion because it believed that the Centers for Medicaid & Medicare Services’ rulemaking power did not constitute clear authorization to make rigid staffing requirements for long-term care facilities.

Surprise Billing: Did you know that insurers are citing Guardian Flight LLC v. Aetna Life Ins. Co. and Specialtycare, Inc. v. Cigna Healthcare, Inc., to argue that the Federal No Surprises Act (NSA) does not grant a private right of action to a provider of health care services? The two failed cases were brought by air ambulance providers. The insurers are arguing that the NSA protects consumers from unexpected out-of-network bills by requiring doctors and insurers to settle billing disputes through an arbitration process but courts should not allow health care providers to challenge the outcome of those arbitration processes.

340B Pilot Program: Did you know that the Department of Health & Human Services (HHS) has announced a limited pilot program that could change how drugmakers provide discounted medicine to providers under the 340B drug pricing program? The pilot would allow 340B providers to pay for select medicines at full price, and then apply for a rebate, instead of the current process of purchasing medicines at a discounted price. HHS is inviting drug manufacturers with medicine selected for the Medicare Drug Price Negotiation Program to apply for participation in this voluntary 340B pilot for a minimum of one year.

Kennedy M. Hagens
410-576-4146 • khagens@gfrlaw.com