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Unsealed Whistleblower Suit Accuses Loyola of Risky Transplants to Drive Medicare Revenue

Federal investigators have not taken over the case pending an ongoing review.

Overview

  • The amended complaint, filed by former Loyola transplant executive Patrek Chase, alleges the hospital accepted extremely ill transfers and listed them as status 1A to secure priority organs.
  • The suit claims Loyola skipped proper screening, tolerated deaths soon after surgery, and pursued billing practices including double charging and inflating Medicare cost reports.
  • Loyola disputes the allegations in court filings, defending decisions to treat very sick patients and arguing that awareness of reimbursement mechanics does not constitute fraud.
  • Defendants also include UNOS, three organ procurement organizations, and two Texas hospitals, with UNOS rejecting the claims as conclusory and not indicative of actionable fraud.
  • Filed under seal in 2023 and unsealed after an August 2025 amendment, the case remains active after the government declined to intervene by the deadline while continuing its investigation.