[nradov]

You have garbled that story. When a provider under bills an insurer that is not grounds for a lawsuit. At most the provider can submit a revised claim if it's still within the time limit.

And it's not necessarily a HIPAA violation to outsource medical billing and chart review as long as there is a proper BAA in place, and everyone follows the Security/Privacy Rules. Many small provider organizations pay outside services to ensure they bill at the highest allowable level.