OMNI HEALTHCARE, LLC v. STACY YOUNG EXCAVATION, INC.

CourtCourt of Appeals of Georgia
DecidedSeptember 30, 2025
DocketA25A1411
StatusPublished

This text of OMNI HEALTHCARE, LLC v. STACY YOUNG EXCAVATION, INC. (OMNI HEALTHCARE, LLC v. STACY YOUNG EXCAVATION, INC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
OMNI HEALTHCARE, LLC v. STACY YOUNG EXCAVATION, INC., (Ga. Ct. App. 2025).

Opinion

THIRD DIVISION DOYLE, P. J., MARKLE and PADGETT, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

September 30, 2025

In the Court of Appeals of Georgia A25A1411. OMNI HEALTHCARE, LLC v. STACY YOUNG EXCAVATION, INC. et al.; A25A1452. OMNI HEALTHCARE, LLC v. STACY YOUNG EXCAVATION, INC. et al.; A25A1473. NORTHLAKE ANESTHESIA PROFESSIONALS, LLC v. STACY YOUNG EXCAVATION, INC. et al.; A25A1474. NORTHLAKE ANESTHESIA PROFESSIONALS, LLC v. STACY YOUNG EXCAVATION, INC. et al.; A 25A 1475. A M ERICA N HEA LTH IM A GI N G OF LAWRENCEVILLE, LLC v. STACY YOUNG EXCAVATION, INC. et al.

PADGETT, Judge.

These five appeals arise out of a discovery dispute in two personal injury cases.

Non-parties, Omni Healthcare, LLC (“Omni”), Northlake Anesthesia Professionals,

LLC (“Northlake”), and American Health Imaging of Lawrenceville, LLC (“AHI”),

challenge several trial court orders requiring them to produce documents to the defendants Stacy Young Excavation, Inc. (“Stacy Young”) and Elton J. Hawkins. For

the reasons that follow, we affirm in A25A1474, A25A1475, A25A1452 and A25A1453,

and we affirm in part, reverse in part, vacate in part, and remand for further

proceedings consistent with this opinion in A25A1411.

1. The record reflects that Jose Sanchez Herrera and Carlos Vega each

separately filed suit against Stacy Young and Stacy Young’s employee, Hawkins, in

separate lawsuits for damages arising out of the same automobile accident.1 As part of

their damages, both Herrera and Vega sought to recover “the full value of [their] past

and future medical expenses[.]”

Northlake provided anesthesia services to Herrera and Vega during surgery for

their injuries, AHI performed MRIs on Herrera, and Benchmark Physical Therapy

(“Benchmark”) provided physical therapy services to Herrera.2

Northlake and AHI sold their medical accounts receivables for Herrera and

Vega to Omni, and Benchmark sold its medical accounts receivables for Herrera to

Omni. Omni is a medical “factoring” company, and part of its business includes

1 Herrera and Vega are represented by the same law firm. 2 Benchmark is not a party to these appeals. 2 purchasing the medical accounts receivable from certain healthcare providers that

offer lien-based medical care to plaintiffs in personal injury cases. See Rose v.

Commercial Factors of Atlanta, Inc., 262 Ga. App. 528, 528 (586 SE2d 41) (2003)

(explaining that “the business of purchasing accounts receivable [is] known as

‘factoring’”); see also United States v. Schwartz, 541 F3d 1331, 1333 (I) (A) (1) (11th

Cir. 2008) (“[T]he purchase of discounted accounts receivable, or invoices, [is] a

financing practice called factoring.”) (footnote omitted). In doing so, Omni becomes

the assignee of the receivable, which is generally secured by a letter of protection3 or

lien on any damages that the plaintiff may recover at the conclusion of his or her case,

but the plaintiff remains obligated for the amount billed. Omni contends that this

arrangement enables a person to obtain medical care and the provider to receive

payment, while transferring the collection risk to Omni.

In Herrera’s lawsuit, Stacy Young and Hawkins served non-party requests for

the production of documents on Omni, Northlake, and AHI. In Vega’s lawsuit, Stacy

3 A letter of protection is “a contractual arrangement under which a patient is permitted to undergo treatment and defer payment to a later date.” Medernix, LLC v. Snowden, 372 Ga. App. 48, 48-49 (903 SE2d 728) (2024) (citing OCGA § 44-14- 470). Under this kind of contract, “the patient’s outstanding medical debt is collateralized by any potential claim arising from the alleged injuries and is secured by a medical lien, but the patient remains personally liable for the balance.” Id. at 49. 3 Young and Hawkins served non-party requests for the production of documents on

Omni and Northlake. The requests sought the production of documents related to

how Omni determined the amount it paid to Herrera, Vega, or their medical providers

to purchase the receivables or pay for their medical care. The requests also sought the

production of all “agreements” between Omni and the plaintiffs’ medical providers.

Omni responded and objected to the discovery requests on its own behalf in

both cases and moved to quash and for a protective order in Vega’s case. Northlake

responded and objected to the discovery requests on its own behalf in Herrera’s case

and moved for a protective order in both cases. And AHI produced some documents

in Herrera’s case but raised no objections to the discovery. The defendants moved to

compel discovery and for sanctions against Omni and AHI in Herrera’s case. After

additional, extensive briefing by the defendants and the non-parties, the trial court

entered five separate discovery orders.

The trial court granted the defendants’ motion to compel as to Omni and AHI

and denied the defendants’ motion for sanctions against those parties, denied

Northlake’s motions for protective orders, and denied Omni’s motion to quash and

4 for a protective order filed on behalf of Northlake. These companion appeals filed by

Omni, Northlake, and AHI follow.4

Omni asserts that the rates at which it purchases accounts receivable from

medical providers, which the parties refer to as “pricing information,” are trade

secrets based off of its own proprietary models and data. The defendants, on the other

hand, point to prior versions of a “provider agreement” between Omni and Barbour

Orthopedics,5 arguing that Omni and medical providers have previously entered into

joint-marketing agreements, which reveal a “roster of participating providers[.]” The

defendants assert that Omni may be incentivizing these medical providers through

patient referrals, marketing, advertising, and entertainment. They contend that Omni

distributes plaintiffs amongst medical providers through its referral networks, and that

it engages in back-channel communications to build claims by routing personal injury

plaintiffs to its network of partnering lien-holders to help build “phantom damages”

4 Omni, Northlake, and AHI filed these direct appeals of the trial court’s orders. As we discuss more fully in Division 2, non-parties have a direct right to an immediate appeal of non-party discovery orders. See Hickey v. RREF BB SBL Acquisitions LLC, 336 Ga. App. 411, 411-414 (1) (785 SE2d 72) (2016). 5 Barbour Orthopedics is not a party to these appeals, but it appears to have provided care to both Herrera and Vega. 5 that are “reduction friendly,” meaning that Omni may accept less than the amount

billed. Relevant to these appeals, the defendants question whether any of the medical

care provided to the plaintiffs was necessary, or whether it was orchestrated by Omni

to create phantom damages.

In Case Numbers A25A1411, A25A1474, and A25A1475, Omni, Northlake, and

AHI, respectively, challenge the trial court’s discovery orders in Herrera’s lawsuit.

In Case Numbers A25A1452 and A25A1453, Omni and Northlake, respectively,

challenge the trial court’s discovery orders in Vega’s lawsuit.

In Case Number A25A1411, Omni appeals from the orders entered in Herrera’s

case, and argues that the trial court erred in granting the motion to compel Omni to

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