Court testimony from UnitedHealth executives suggests problems with MultiPlan

At the same time, UnitedHealthcare sued TeamHealth in the U.S. District Court for the Eastern District of Tennessee in late October, claiming that the emergency room team deliberately and systematically tricked the medical insurance company into paying more than Fraudulent claim of $100 million.

TeamHealth did not provide a response before the deadline.

UnitedHealthcare did not respond to an interview request.

MultiPlan wrote in a letter to shareholders on Monday that UnitedHealthcare did not comment on its external partners and contracts.

“Customers still want to use the parcel network, MultiPlan provides the expected cost negotiation, we are willing to adapt to this,” Haben told the court. “We will not force customers to move.”

According to an internal document submitted by TeamHealth, UnitedHealthcare had planned to convert its self-funded customers from MultiPlan to an internal plan. It is estimated that this will save it more than $300 million in supplier costs each year. Court. UnitedHealthcare is still seeking to edit some of the evidence, and the court has ordered the document not to be made public until the judge decides whether the slideshow is relevant to the case.

However, these documents partially confirmed the statement in a short seller report last year, but MultiPlan strongly denied this statement. According to the report, UnitedHealthcare, MultiPlan’s largest customer, is phasing out the company’s service lines. The report speculates that UnitedHealthcare accounts for one-third of MultiPlan’s total business.

A few months after Multiplan went public as a US$11 billion special purpose acquisition company, some analysts questioned whether the transaction represented a real growth opportunity or resolved the imminent bond maturity issue faced by MultiPlan.When the report was released, the company was also faced with how to Stay relevant Once the “No Accident Law” comes into effect in 2022.

MultiPlan stated that it plans to achieve growth by investing in new business lines and targeting payers other than traditional insurance companies. Others argue that MultiPlan’s services provide insurance companies with “legal protection”, allowing them to blame low interest rates on suppliers rather than their own decisions.

MultiPlan continues to deny reports of short sellers, saying that in the past three years, its revenue from UnitedHealthcare has increased by more than 30%, and the two companies have established a partnership. MultiPlan is expected to grow after 2022.

“The false statement about UHC’s termination of its relationship with MultiPlan was driven by short sellers for a long time under their own economic interests,” MultiPlan wrote in a report. Letter to shareholders on Monday.

But many investors believe that UnitedHealthcare is developing an internal alternative to MultiPlan. A UnitedHealthcare policy document in June described Naviguard as a “major out-of-network product” for employers to resolve disputes with suppliers.

According to Haben, Naviguard was not developed to replace MultiPlan and currently offers a different set of services. He said he manages the relationship between UnitedHealthcare and MultiPlan.

Haben said that Naviguard is an internal customer promotion tool that helps members understand their interests, directs patients to providers within the network, and resolves any out-of-pocket expenses. He added that MultiPlan provides a network of supplier agreements, negotiation services, abnormal cost management, and fraud and waste prevention tools.

Haben did not immediately respond to an interview request.

“UHC’termination’ rumors have been used by opportunistic short sellers to profit by driving down MultiPlan’s stock and other securities,” MultiPlan wrote to shareholders Monday morning.

This is not the first time the company’s management has dealt with the relationship with UnitedHealthcare.

In July, MultiPlan stated that it does not expect UnitedHealthcare’s policy changes to bring about “Material Shock” Regarding its financial status in 2021.

That month, UnitedHealthcare formulated a plan to stop paying out-of-network claims when fully insured customers seek non-emergency care outside the local coverage area. One week after the news of UnitedHealthcare’s updated guidelines was made public, MultiPlan’s stock price plummeted by 25%.

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