Kaiser Got $4M In Discounts From 'Silent PPO,' Hospital Says

Law360, New York (October 24, 2012, 2:46 PM EDT) -- A Hawaii hospital filed a $4 million lawsuit Friday accusing HMO operator Kaiser Foundation Health Plan Inc. of creating a “silent PPO” arrangement that allowed it to wrongly claim discounts under another insurance company’s contract.

The complex framework involved Kaiser paying Stratose Inc., a so-called repricing firm that is also being sued, for the right to use discounts that Stratose accessed from a PPO insurer that had a contract entitling its customers to reduced-cost treatment at Queen’s Hospital Medical Center in Honolulu, the lawsuit alleges....
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