24 NY-Area Hospitals Sue Aetna U.S. Healthcare, Seeking $95 Million, Says Garfunkel Wild & Travis.Business/Health Editors, Legal Writers GREAT NECK, N.Y.--(BW HealthWire)--May 30, 2000 The following is an announcement by the law firm of Garfunkel Wild & Travis, P.C.: Aetna U.S. Healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. , one of the nation's largest HMOs, was sued today by a coalition of 24 New York-area hospitals. The lawsuit charges Aetna with breach of contract, various violations of the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Prompt Payment Law, the New York Managed Care Act, and violations of New York's deceptive business practices laws. The suit was filed in New York State Supreme Court. The hospitals are seeking no less than $45 million in compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. and $50 million in punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. , according to attorney Fred Miller, a partner at Garfunkel Wild & Travis, P.C. and head of the law firm's healthcare practice group. The complaint also seeks attorneys' fees, treble damages A recovery of three times the amount of actual financial losses suffered which is provided by statute for certain kinds of cases. The statute authorizing treble damages directs the judge to multiply by three the amount of monetary damages awarded by the jury in those cases and interest on unpaid claims. This action against Aetna U.S. Healthcare is believed to be the first time that a large number of hospitals in a region have joined to compel a managed care company to honor its contractual and legal commitments, Mr. Miller says. "Our clients are frustrated by Aetna's failure to pay fully and timely for medically necessary medically necessary Managed care adjective Referring to a covered service or treatment that is absolutely necessary to protect and enhance the health status of a Pt, and could adversely affect the Pt's condition if omitted, in accordance with accepted services provided to our clients' patients, who happen to be Aetna subscribers," Mr. Miller says. "Aetna's response to date has been wholly inadequate. The company makes promises to do better, but apparently is either unable or unwilling to keep these promises. It's a shame that Aetna has forced our clients to resort to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. when these matters could be resolved by good faith negotiations." Garfunkel Wild & Travis has one of the largest healthcare practices in New York State, specializing in the representation of healthcare providers. Working with Mr. Miller on the Aetna litigation are Michael J. Keane, a litigation partner, and Roy Breitenbach, a senior litigation associate. All requests for information should be directed to Mr. Miller at (516) 393-2250 or email: fmiller@gwtlaw.com. |
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