House Committee Investigates Health Care Union’s Funds Management
A recent Politico investigation alleged that 1199SEIU United Healthcare Workers East President George Gresham for years used the organization’s funds to benefit himself, his family, and political allies. Gresham has "refuted" the claims. Others in the news include: Semler Scientific, Morgan Stanley, UnitedHealth, and more.
Politico:
House Committee Requests Probe Of Health Care Union’s Spending
The House Committee on Education and the Workforce is calling for an investigation into “improper financial practices” by the union 1199SEIU United Healthcare Workers East, citing recent reporting by POLITICO. In a letter Thursday to a top federal labor official, committee Chair Tim Walberg (R-Mich.) expressed concern about “numerous troubling allegations” detailed in POLITICO’s investigation, which found union President George Gresham has for years used the organization’s funds to benefit himself, his family and political allies. (Kaufman, 4/17)
In other health industry developments —
Modern Healthcare:
Ohio, West Virginia Hospitals Form Clinically Integrated Network
More than two dozen rural hospitals in Ohio and West Virginia formed a clinically integrated network, which providers are increasingly turning to instead of health system-led acquisitions. The Ohio High Value Network, announced Thursday, is a 26-hospital collaboration designed to provide the purchasing power, patient volume and clinical expertise needed to reduce costs, reinforce alternative payment models and boost care quality. Similar coalitions formed in Minnesota and North Dakota over the past two years. (Kacik, 4/17)
Modern Healthcare:
Semler Scientific Offers $30M To Settle DOJ's QuantaFlo Probe
Medtech company Semler Scientific has announced an offer to pay nearly $30 million to the Justice Department to resolve allegations related to how Medicare and other federal healthcare programs were billed for peripheral artery disease tests conducted using its QuantaFlo device. The Justice Department has not responded to the offer. If it’s rejected, the agency could proceed with a civil lawsuit under the False Claims Act, which could result in the company having to pay more. (Dubinsky, 4/17)
Bloomberg:
Morgan Stanley Hires Senior Health-Care Banker David Kostel
Morgan Stanley has hired senior dealmaker David Kostel as the vice chairman of its health-care investment banking group, people familiar with the matter said. Kostel, who had previously been global co-head of coverage and global head of health care at UBS Group AG, will join the Wall Street firm next month and will be based in New York, the people said, asking not to be identified discussing confidential information. (Davis, 4/17)
Stat:
UnitedHealth Cuts Profit Outlook By $3 Billion As More Medicare Patients Get Care
UnitedHealth Group on Thursday slashed its profit outlook for this year after the health care conglomerate said its Medicare Advantage members continued to seek more medical care than it anticipated, sending its stock tumbling. (Herman and Bannow, 4/17)
KFF Health News:
Watch: Why Insurance Companies Are Denying Coverage For Prosthetic Limbs
Although knee replacements are usually covered by health insurance, amputees face roadblocks to coverage and often must prove their prosthetics are medically necessary. (Andrews, 4/18)
