Sharon Hill, Pa.

Legend Healthcare escalated its reimbursement battle with UnitedHealthcare, filing an $11 million lawsuit against the Minnetonka, Minn.-based managed care organization. The suit seeks damages resulting from allegedly wrongful termination.

The action came just weeks after Legend filed a $1.5 million suit against UnitedHealthcare's South Florida plan in an attempt to collect money it says the plan owes for services rendered from October 1998 to August 1999. At the time, UnitedHealthcare spokesman Roger Cruzen said, "We actually believe they might owe us some money."

Legend's latest action concerning payment issues came in September after UnitedHealthcare notified Legend that it planned to terminate its agreement with the company, said Philip G. Leone, Legend executive vice president and chief operating officer.

Calling the notice "invalid and without legal basis," Leone said, "We can no longer expect our network providers to service United patients until these past payment issues are resolved."

Cruzen said his company's stance has not changed since the announcement of the earlier lawsuit. "We think it's still a request for arbitration," he said.