Morning Briefing
Summaries of health policy coverage from major news organizations
Judge Declines To Block Former Optum Employee From Working At Billionaire's Health Initiative In Closely Watched Case
The New York Times: UnitedHealth Loses Case To The Health Venture Begun By Amazon, Berkshire-Hathaway And JPMorgan Chase
UnitedHealth Group, the giant health insurance company, on Friday lost its case to prevent a former executive from working at the new health care venture formed by three powerful corporations, Amazon, Berkshire Hathaway and JPMorgan Chase. A federal judge in Boston denied UnitedHealth’s request to have the executive, David William Smith, immediately stop working. Mr. Smith was an executive at Optum, a unit of UnitedHealth, and it accused him of taking corporate secrets to what it claimed was a competitor. Mr. Smith has denied any wrongdoing. (Abelson, 2/22)
Reuters: U.S. Judge Will Not Block Amazon-Berkshire-JPMorgan Health Venture's New Hire
The decision by U.S. District Judge Mark Wolf in Boston came in a lawsuit closely watched in the industry for clues about the future plans of the venture, which was announced in January 2018 with a goal of lowering healthcare costs. UnitedHealth's Optum unit had sought a court order blocking David Smith from working at the venture, saying he could share trade secrets that would give it a competitive advantage. (2/22)
Stat: Judge: Former Optum Exec Can Work At New Gawande Venture, For Now
The case has received disproportionate attention for a fight nominally over one employee’s contract because the hearings have shed new light on the secretive health care venture formed by Amazon, Berkshire Hathaway and JPMorgan Chase in 2018. Some experts in the field believe the venture may be one of the earliest and most important forays by a tech company into the health insurance market. (Sheridan, 2/22)
The Star Tribune: UnitedHealth Group Denied Restraining Order Over Executive's Departure
On Friday, the judge issued a stay in the case, writing in his order that "if the parties agree to a resolution to their dispute, they shall promptly inform the court and this case will be dismissed." "If and when the arbitrator issues a decision," Wolf wrote, "the party that did not prevail shall promptly report whether it or he intends to appeal the decision to this court." (Snowbeck, 2/22)
