NY hospitals sue UnitedHealth, claim racketeering
A pair of New York hospitals--Flushing Hospital Medical Center and Jamaica Hospital Medical Center--have filed a Racketeer Influenced and Corrupt Organizations (RICO) suit against health insurer UnitedHealth. The suit is unusual in that RICO suits are typically used as a tool by public prosecutors in their war against against gangland activity. But that hasn't stopped the two hospitals, which are seeking at least $50 million in punitive damages and millions more in actual damages.
The suit is a result of long-standing bad blood between the hospitals and UnitedHealth; the hospitals already sued UnitedHealth last year in New York's state court, basing their claim on similar assertions. In both cases, the hospitals' central contention that UnitedHealth and subsidiary Oxford systematically told patients that the hospitals weren't in their networks, scaring away significant amounts of business. The hospitals had already been in contract disputes with UnitedHealth.
For more information on the lawsuit:
- read this Hartford Courant piece
Related Article:
NY hospital battles Oxford Health. Report
UnitedHealth Group faces criminal inquiry. Report
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Comments
By Anonymous | Posted 12:14pm | April 10, 2007
the Insurance Industry is self regulated which is why the courts are the only recourse for abuses. The losers include the providers and consumers. The winners are the trial attorneys.Time to level the playing field.Regulate the Insurance Industry just as Physicians are regulated and mandate financial transparency for Insurance companies.That would help to stop the abuses and cut unnecessary costs.
By Anonymous | Posted 3:52pm | April 23, 2008
I agree, there is no regulatory body willing to take on the insurance industry, so it is left to the attorneys to make them own up to honoring contractual agreements. Either way, lawyers win. American policyholders lose, by claims rejection and by increased premiums to cover the insurance industry's increased legal fees.....
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