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Detroit Area Hospitals Sue To Recover Medicaid Funds
Date:12/8/2008

e rendered to OmniCare Medicaid insureds. Yet, during this same period, United American Healthcare was paid over $50 million in management fees by OmniCare. During the liquidation process, the court approved an order allowing the hospitals to pursue damages claims against United American HealthCare and various of its officers and directors for mismanaging OmniCare.

On December 2, 2008, United American Healthcare announced a "Stock Repurchase Program" under which it proposed to redeem up to $1 million of its outstanding shares, thereby transferring its cash to its shareholders. The motion alleges that this buyback will almost certainly render United American Healthcare unable to pay full damages to the hospitals.

Gerard Mantese, the hospitals' attorney, stated, "This suit establishes that, in a very real sense, United American Healthcare and many of the individual defendants took money directly from the pockets of providers caring for Michigan's most vulnerable residents. The primary purpose of those payments was to pay for health care for Michigan's Medicaid population, which consists largely of children, disabled individuals and senior citizens living in poverty."


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SOURCE Mantese and Rossman, P.C.
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