UPMC Used Nonprofit Funds On For-Profit Biz, Insurer Says

Law360 (June 17, 2019, 10:03 PM EDT) -- An insurance company said the University of Pittsburgh Medical Center was violating Pennsylvania law by using its nonprofit health care division to strong-arm employers into subscribing to its for-profit insurance subsidiaries, according to a complaint filed Friday with the Pennsylvania Department of State.

Philadelphia-based Homestead Insurance Co. and its affiliates, which offer claims auditing, third-party administration and self-insured health plans, claimed that the Pittsburgh-based hospital network had violated the Institutions of Purely Public Charity Act. The insurer said UPMC uses its takeover of hospitals in north-central Pennsylvania to drive up health care prices and steer patients toward its own for-profit insurance...

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