HOUSTON — Regulators in Idaho and New Mexico are investigating Nutex Health, a company that operates microhospitals and is headquartered in Houston. Multiple lawsuits filed by investors accuse Nutex Health of concealing a partnership with HaloMD.

Several patients reported being refused care at Nutex Health emergency rooms unless they provided upfront payment. One patient, after being refused care, sought treatment at another hospital and was diagnosed with a heart attack. Nutex Health has stated it screens all patients for medical emergencies and does not deny care to anyone experiencing a medical emergency.

Lawsuits filed by investors claim that the undisclosed partnership with HaloMD exposes Nutex Health to additional legal risks. Nutex Health utilizes HaloMD to manage its arbitration disputes. HaloMD, which is based in Texas, is presently involved in multiple lawsuits itself. Sources have described profit-sharing arrangements between HaloMD's founders and surgeons.

Following the implementation of the No Surprises Act, Nutex Health's revenue tripled within less than a year of the company initiating arbitration disputes under the act. During the same period, its profit increased by nearly twelve times. Patients have reported paying thousands of dollars for short visits to Nutex Health hospitals.

Health insurers faced charges from Nutex Health that exceeded the amounts paid by patients for the same hospital visits. During the Covid-19 pandemic, patients claimed that Nutex Health billed insurers between $2,000 and $5,000 for Covid-19 tests. One family reported their insurance paid Nutex Health $21,000 for five Covid-19 tests.

Why It Matters

The investigations by state regulators and the combined investor lawsuits against Nutex Health pertain to its operational practices, particularly regarding emergency care provision and financial dealings. The increase in the company's revenue and profit followed its engagement in arbitration disputes facilitated by the No Surprises Act, indicating a specific financial impact related to this legislation. The claims made by patients about upfront payment requirements and high billing rates, alongside the allegations in investor lawsuits concerning the hidden partnership with HaloMD, form the basis of current legal and regulatory scrutiny of the company.