Wal-Mart suing hospital to recoup payout on workers comp claim.(News)

Business Insurance, December, 2005 by Ceniceros, Roberto

Byline: ROBERTO CENICEROS SALINAS, Calif.-In what some observers say is part of a growing trend of employers filing subrogation suits, Wal-Mart Stores Inc. is suing a hospital to recoup workers compensation benefits it paid to an employee who allegedly contracted so-called flesh eating bacteria while receiving treatment at the facility.

The retailing giant alleges that the hospital was negligent in it sterilization procedure and that it should bear some of the benefit and indemnity costs. Wal-Mart was self-insured at the time. While employers have previously filed third-party subrogation claims alleging negligence and have sought workers compensation expenses, such claims are infrequent compared with other property/casualty lines, industry observers say....

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