MUSD might sue company for $200,000

Maricopa Unified School District administrators are calling on the school board to legally challenge a pharmacy benefits firm they say owes the district more than $200,000 after services to the district were allegedly cut off without warning a year ago.

The administrators claim the company, Flipt LLC, has not made attempts to settle with the district since it shut down its pharmacy benefit management business, leaving the district without service.

“We are disappointed by Flipt LLC’s termination of services without fulfilling their contractual obligations to Maricopa Unified School District,” said MUSD Supt. Tracey Lopeman. “Despite attempts to resolve this matter, Flipt has not responded to our demand letters. We are pursuing arbitration/litigation to seek $200,266.80 owed to the district. We remain committed to transparency and accountability.”

MUSD Chief Financial Officers Jacob Harmon recommends the district negotiates, arbitrates or litigates with Flipt to reach a settlement.

MUSD’s governing board will consider the matter during its 6:30 p.m. Wednesday meeting at the district’s administrative offices, 44150 W. Maricopa Casa Grande Highway.

Harmon said the amounts of claimed damages to the district include $58,160 for rebates owed and $142,107 for deposits owed.

In 2021, MUSD entered into a series of contracts with Flipt to provide professional services to the district and its employees.

“In breach of its contracts with MUSD, on March 29, 2023, Flipt unilaterally and without prior warning, gave notice to MUSD that its services to MUSD would be discontinued after April 14, 2023, because Flipt was exiting the pharmacy benefit management market altogether,” Harmon’s memo to the board states. “Flipt ceased providing contractual services for MUSD after April 14, 2023.”

Under terms of the contract, Flipt and MUSD agreed to try to resolve any dispute through informal negotiations.

If the matter is not resolved in informal negotiation, either party wishing to pursue the dispute will submit it to binding arbitration conducted by the American Health Lawyers Association and pay the filing fee for initiating the arbitration. The parties will split the aribrator fee.

The arbitrato’s award will be final and binding on the parties, and judgment upon such award may be entered in any court, the memo states.

The administration recommends the district hire an attorney to represent it in any arbitration or litigation proceedings and collection on any judgment awarded.

Attempts to contact Flipt representatives were unsuccessful today.