Two US Senators probe UnitedHealth over alleged nursing home incentives

Investing.com -- U.S. Senators Ron Wyden and Elizabeth Warren have initiated an investigation into UnitedHealth Group (NYSE: UNH) regarding claims that the healthcare giant secretly provided bonuses to nursing homes to reduce hospital transfers for ill residents.

In a letter dated August 6 addressed to UnitedHealth CEO Stephen Hemsley, the senators requested comprehensive information about the company’s alleged incentive programs and their effects on nursing home residents. They have asked for responses by September 8.

The investigation follows a May report by the UK’s Guardian newspaper, which claimed UnitedHealth made undisclosed payments to nursing homes as part of cost-cutting measures. According to the Guardian’s investigation, these tactics saved the company millions of dollars but potentially endangered residents’ health in some cases.

When the allegations first surfaced in May, UnitedHealth stated that the U.S. Department of Justice had already investigated these claims, interviewed witnesses, and collected thousands of documents that reportedly showed "significant factual inaccuracies" in the allegations.

You May Also Be Interested In

• Aggreko files for proposed IPO
• Bausch + Lomb advances two eye drop candidates to new trials
• Parker-Hannifin (PH) files mixed shelf