Facts

Kaiser Foundation Health Plan, Inc. members received medical services from El Camino Hospital. El Camino sued Kaiser claiming Kaiser underpaid for services. El Camino asked for approximately $10 million in damages. After an arbitration award in favor of Kaiser, Kaiser petitioned the court to confirm the award.

PLAINTIFF'S CONTENTIONS: El Camino contended that it provided services to Kaiser members and that the reasonable value of its services are more than what Kaiser paid. El Camino sought the recovery of full billed charges.

DEFENDANT'S CONTENTIONS: Kaiser contended that El Camino was not entitled to full billed charges and that, in fact, the amounts Kaiser paid to El Camino exceeded the reasonable value of El Camino's services.

Result

The court confirmed the arbitration award in favor of Kaiser and found that El Camino was not entitled to its billed charges, and that Kaiser's payment exceeded the reasonable value of El Camino's services.