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NY Hospitals File RICO Lawsuits Against Health Group

I could be wrong, but the decision on this could create a precedent that may have a big impact health insurance companies all over the US as well as p

I could be wrong, but the decision on this could create a precedent that may have a big impact health insurance companies all over the US as well as potentially on the design of a universal health care program in the US. Queens Chronicle: (h/t Flint)

United Health Group, its United HealthCare and Oxford subsidiaries and several United and Oxford executives, including former United CEO William Maguire, are accused of violating the U.S. Racketeer Influenced and Corrupt Organizations Act in a law suit filed Tuesday in the U.S. District Court, Eastern District of New York, by Jamaica Hospital Medical Center and Flushing Hospital Medical Center.

The hospitals, in their RICO suit, accuse United Health Group and United HealthCare and other subsidiaries of implementing a "rogue business plan" on a "national level" that, for more than three years, "has contributed to UHG's profits, which, in turn, have been utilized in attempts to justify outlandish compensation to Maguire and to enhance the value of illegally backdated options for UHG stock" which were given to Maguire, other UHG senior executives and to managers of its business units.
[..]David Rosen, president and CEO of both hospitals, said: "UHG, United and Oxford have clearly established and refined a pattern of deceitful practices and myriad means to improperly retain money they owe to service providers, and to arbitrarily and unjustifiably deny payment for their members' medical services under their plans.

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