
Factual and Procedural Background
Five different people were insured by AAA for automobile insurance. Each of these five individuals was injured in accidents caused by others and sought treatment at Dameron Hospital. The patients were required to sign an agreement with the hospital upon their discharge assigning any UM/UIM or MedPay benefits to the hospital. Each of the five people had UM/UIM and/or MedPay coverage on their auto insurance policies. Dameron requested direct payments from the patients’ auto insurance carriers at the hospital’s full rates. However, AAA evaluated the bills sent by the hospital and paid significantly lower rates than what the hospital had billed. The auto insurer paid the balances to the insureds, and the hospital filed a lawsuit against the insurance company to recover the difference.