Corporate Compliance

New York hospitals sue UnitedHealth for racketeering

Healthcare Auditing Weekly, February 13, 2007

Two New York hospitals have filed a Racketeer Influenced and Corrupt Organizations (RICO) suit against against health insurer UnitedHealth, the Associated Press reports.

The two hospitals--Flushing Hospital Medical Center and Jamaica Hospital Medical Center--collectively seek at least $50 million in punitive damages and millions more in actual damages.

The suit claims UnitedHealth cost both medical centers business by repeatedly telling patients that Flushing was not in its network and that Oxford Health, which was bought by UnitedHealth, did the same thing to patients at Jamaica Hospital.

The dispute stems from contract negotiations between the insurers and hospitals. The lawsuit also claims Oxford postponed signing contracts with both hospitals to avoid paying them higher negotiated fees.

Read more on this news story here.

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