UnitedHealth Group is suing The Guardian for defamation following the publication of an investigative report from the media outlet that accuses the company of engaging in harmful and fraudulent cost-cutting tactics in nearly 2,000 nursing homes.
The lawsuit, filed June 4 in a Delaware state court, centers around a May 21 article with the headline “Revealed: UnitedHealth secretly paid nursing homes to reduce hospital transfers.”
The report is based on an investigation by The Guardian that alleges UnitedHealth incentivized nursing homes nationwide to avoid medically necessary hospital transfers for its member residents, with some cases resulting in permanent harm to patients. UnitedHealth has denied the allegations, saying that the claims are false and have caused significant reputational damage.
“This is unquestionably defamatory. The Guardian effectively accuses UnitedHealth of intentionally causing the premature deaths of patients by fraud,” the complaint says. “Such an accusation could not be more serious. And it could not be more false.”
The Guardian reported that UnitedHealth paid thousands in bonuses to nursing homes to prevent the transfer of residents to hospitals and coerced residents into signing “do not resuscitate” orders as a cost-saving measure, even when those residents had expressed a desire for life-saving care.
The outlet said it reviewed thousands of confidential corporate and patient records, and interviewed more than 20 current and former UnitedHealth and nursing home employees. The report also included two federal whistleblower complaints filed in May.
In its reporting, The Guardian said it had obtained an internal email from UnitedHealth that showed supervisors at the health insurer had “budgets” for how many hospital admissions were “left” for nursing home residents. The outlet also reported that the company offered bonus payments to nursing homes for residents enrolled in “Institutional Special Needs Plans,” a type of Medicare Advantage plan designed for people who need long-term care in a facility.
According to the report, some payments reportedly incentivized nursing homes to share confidential patient information with UnitedHealth so the insurer “could directly solicit elderly residents and their families.”
“The Guardian knowingly published false and misleading claims about our Institutional Special Needs Program, forcing us to take action to protect the clinician-patient relationship that is crucial for delivering high-quality care,” UnitedHealth told Becker’s in a statement. “The Guardian refused to engage with the truth and chose instead to print its predetermined narrative.”
UnitedHealth alleges that the outlet edited internal emails and selectively used sources to craft a misleading narrative.
UnitedHealth also claims that The Guardian ignored provided evidence that contradicted the article. The company claims that the report’s allegedly false statements led to a decline in business opportunities and trust, resulting in significant expenses for legal and public relations efforts.
UnitedHealth said it has made repeated requests for The Guardian to retract or correct the story, which the outlet told Becker’s is not factual. The insurer initially responded to The Guardian’s report May 21, explicitly countering the piece.
UnitedHealth is seeking both compensatory and punitive damages to be determined during a jury trial, claiming that The Guardian acted with malice and a reckless disregard for the truth. The company is also asking for damages related to reputational harm and financial losses tied to the article’s publication.
“The Guardian stands by its deeply-sourced, independent reporting, which is based on thousands of corporate and patient records, publicly filed lawsuits, declarations submitted to federal and state agencies, and interviews with more than 20 current and former UnitedHealth employees – as well as statements and information provided by UnitedHealth itself over several weeks,” a spokesperson for the outlet told Becker’s. “It’s outrageous that in response to factual reporting on the practice of secretly paying nursing homes to reduce hospitalizations for vulnerable patients, UnitedHealth is resorting to wildly misleading claims and intimidation tactics via the courts.”
The original report is here.
