Kindred claims WellCare delays reimbursement to boost bottom line

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Kindred Healthcare, a Louisville, Ky.-based long-term acute care provider, has sued Tampa, Fla.-based managed care company WellCare Health Plans for allegedly delaying reimbursement to Kindred hospitals as a way to increase profits, according to the Tampa Bay Times.

In the lawsuit, Kindred claims that after WellCare receives payment from the government for Medicaid and Medicare patients, the managed care company invests the money and delays payment to Kindred.

"WellCare receives millions of dollars by investing advance payments of taxpayer funds provided to it to pay the health care claims…The longer WellCare can hold on to these amounts before it pays those providers, the greater the returns," states Kindred's complaint, according to the report.

In a written statement to the Tampa Bay Times, WellCare said Kindred's allegations are without merit, and it intends to "vigorously defend" itself against the lawsuit.

Kindred is seeking more than $3.2 million in damages in the suit.

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