Ileana M. Hernandez

Hernandez, a partner in Manatt, Phelps & Phillips LLP’s litigation group, focuses her practice on complex matters in the health insurance and managed healthcare industries. She defends major health plans and insurers in consumer and unfair competition actions, investigations and enforcement actions, bad faith denial of benefits suits and ERISA suits.

Recently, she said, there’s been an upsurge in lawsuits by substance abuse treatment providers—operating out-of-network—over allegations that her insurer clients have failed to adequately reimburse them for services rendered.

“Most of the suits involve a bulk of claims ranging from smaller ones of $50,000 to $75,000 to as much as $55 million,” Hernandez said. “We’re seeing this pervasively throughout the industry, starting two or three years ago.”

None of the suits has gone to trial so far, though there have been some settlements. Hernandez declined to name her clients or to outline the legal issues involved. She handles the day-to-day management of the cases, including key litigation tasks such as attending hearings, communicating with opposing counsel and attending depositions.

“Our general position is that the out-of-network provider is stuck with the terms of the contract,” she said. “We explain our view of the contracts and our experts opine on what the customary rate should be.”

Hernandez is also actively involved in pro bono work, representing Spanish-speaking clients seeking assistance with asylum, adoptions, permanent guardianships and unlawful detainer actions.

“I came up at Manatt getting courtroom experience doing pro bono work,” she said. “Now, I oversee our young associates as they go to court with these cases. My workload limits my ability to do them myself.”

In addition, she has experience in bankruptcy litigation, including preference, fraudulent conveyance and other avoidance actions; non-dischargeability proceedings; bankruptcy-related directors and officers litigation; and financial fraud litigation. Her bankruptcy practice is concentrated on large reorganization cases and has involved the representation of creditors, trustees, creditors’ committees and governmental and regulatory entities.

In addition to her client work, she sits on the Board of Trustees for Mount St. Mary’s University in Los Angeles. Prior to joining Manatt, Hernandez served as a judicial extern to U.S. District Judge Audrey B. Collins of Los Angeles, currently a state appellate justice.

“I very much enjoy what I do,” she said. “Manatt gives me the opportunity to balance a vibrant health care practice with meaningful asylum work.”

— John Roemer