Bartko, Zankel, Bunzel & Miller File Antitrust Lawsuit Against MultiPlan Co. and Major Health Insurers

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SAN FRANCISCO, November 2, 2021 / PRNewswire / – Bartko, Zankel, Bunzel & Miller have filed a lawsuit on behalf of Verity Health Systems Liquidating Trust (“Verity”) against MultiPlan and major health insurers for anti-trust practices that violate California Cartwright Law and Unfair Competition Law. MultiPlan admits that its customers, health insurance companies, Verity and other U.S. health care providers have paid billions of dollars less per year than they would have for at least 10 years.

According to court documents, MultiPlan acted as an illegal corporate hub under a “hub, spoke and rim” agreement, with most of the major insurance companies, to fix and artificially reduce the amounts of reimbursements outside. network paid to hospitals. . By setting lower fixed prices for healthcare payments provided by hospitals, MultiPlan has worked with major insurance companies to exercise their market dominance and reduce reimbursements to hospitals by approximately 10 billion dollars per year from 2012 to 2020.

The reduction in payments had a significant impact on Verity’s fiscal health. In 2018, Verity filed for bankruptcy, affecting hospitals in the Bay Area and Los Angeles area, including O’Connor, Seton, Seton Coastside, St. Francis, St. Louise and St. Vincent.

“Hospitals operate in a tough environment and are being pushed to the brink of collapse by unfair business practices and payments from MultiPlan Co. and insurance companies,” said Howard grobstein, liquidator trustee of Verity. “Verity, in partnership with our lawyers at Bartko, is leading the charge against these unfair and illegal practices that harm hospitals, doctors, patients and the health system as a whole.”

MultiPlan’s goal, which he achieved, was to reduce the amount insurance companies pay for off-grid health services in exchange for a reduction in the amount they help insurance companies avoid. to pay hospitals for the important services they provide to patients. Fortune 500 companies, including Blue Shield of California, United Health, Cigna, Anthem, Centene (Health Net), Humana and Aetna, all agreed to pay the amount specified by MultiPlan. Given the deal between all of the major insurance companies, Verity and other hospitals have no choice but to accept the lower fixed payments.

Verity’s lead counsel in this case, Patrick M. Ryan de Bartko said, “We have brought this action on behalf of Verity to redress a serious wrong committed against Verity and many other hospitals across the country. Verity and the other providers were in dire need of the money owed to them due to offline disconnection. patient care. But the funds never arrived, as MultiPlan and the insurance companies illegally agreed to pay far less than the value for these important patient services. In the meantime, in large part because of the illegal behavior involved in this case, MultiPlan and the profits of commercial health insurers have skyrocketed at the expense of hospitals, like Verity, and other providers. While it is too late to save Verity from bankruptcy, we hope this action will deter similar behavior against other hospitals in the future. “

About Bartko Zankel Bunzel & Miller
Bartko, established over 40 years ago, is a boutique law firm specializing in complex domestic and international litigation and investigations, as well as real estate and franchising transactions. It is a firm of more than 40 lawyers dedicated to the cutting-edge strategic representation of clients in California, nationally and internationally. Bartko’s practice areas include representing both plaintiffs and defendants in complex commercial litigation, antitrust and competition claims, intellectual property litigation, trade secret litigation, anti-trust litigation, counterfeiting, complex employment disputes, strategic employment and labor advice, collective bargaining and real estate disputes, among others. Bartko is currently investigating and preparing a number of other large-scale prosecutions, including prosecutions similar to this action, on behalf of hospitals and providers across the country, relating to violations of antitrust and other laws. violations of the law by insurance companies and others.

Contact: Patrick M. Ryan
[email protected]
(414) 291-4540

SOURCE Bartko, Zankel, Bunzel & Miller


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