Hush-Hush Healthcare Feud: UnitedHealthcare to Cough Up $91 Million in Arbitration Over Billing Practices

Three arbitrators ruled that UnitedHealthcare Group Inc UNH must pay damages of $91 million in a 2018 dispute over billing practices that disappeared from public view after the proceedings moved from federal court to a secretive arbitration panel.

Envision Healthcare, a KKR Co Inc KKR-owned company, sued UnitedHealthcare in 2018, Financial Times reported.

Envision employs doctors for emergency rooms and anaesthesiology departments in several US hospitals.

Also Read: UnitedHealth Posts Q1 Profit Of $5.6B On Strong Optum, Health Plans; Lifts Earnings Outlook.

UnitedHealthcare disagreed with the decision and noted that Envision had asserted many claims that the arbitrators had denied.

The report also added that UnitedHealthcare filed a lawsuit last year, claiming Envision overcharged for routine work by submitting bills indicating that patients would have risked death or permanent impairment unless they had received immediate and complex care. 

In a statement to Financial Times, UnitedHealthcare said it would “continue efforts to protect our members and customers from the small number of bad actors . . . who demand unreasonable and anti-competitive rates for their services and drive up the cost of care for everyone”. 

Envision counters that it is the victim of a long-running campaign by UnitedHealthcare to avoid paying legitimate medical bills.

Price Action: UNH shares are down 0.38% at $493.84 on the last check Tuesday.