UMass Memorial bone registry to pay more than $800 K in fines
WORCESTER Attorneys general in two states slapped UMass Memorial Health Care Inc. with more than $800,000 in fines and penalties today for “unfair and deceptive acts” by the hospital’s bone marrow registry, which for years raked in millions of dollars in lab testing fees for the hospital by using high-priced models in lab coats and bright blue wigs to urge people to sign up for the registry.UMass Memorial employees failed to disclose to potential donors that their insurance companies would be charged as much as $4,000 for a simple blood test that typically costs about $100 or less.
In addition to fines, restitution and attorneys fees to be paid to prosecutors in Massachusetts and New Hampshire, UMass Memorial also has struck separate confidential agreements to repay the insurance companies who paid the inflated testing bills submitted by the registry.
New Hampshire Attorney General Michael A. Delaney said UMass Memorial and its Caitlin Raymond International Registry profited by taking advantage of well-intentioned state laws requiring health insurers to pay for bone marrow testing.
“Charging $4,300 for a test that costs $50 is an outrageous exploitation and distortion of that statute,” Mr. Delaney said in a written statement.
The New Hampshire legal action against the hospital, settled out of court yesterday, alleges that in some cases Caitlin Raymond staff discarded potentially life-saving donor samples, rather than test them, when the registry didn’t have enough information to bill the donor’s insurance company.
“It seems the profit goal was the end game here,” Massachusetts Attorney General Martha Coakley said in an interview.
“What’s disturbing is the extent to which we believe this institution targeted people with insurance, seeking reimbursement up to $4,000 for a test that costs $100 on average,” Ms.
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(T&G Staff File Photo/PAUL KAPTEYN) By Thomas Caywood TELEGRAM & GAZETTE STAFF WORCESTER — Attorneys general in two states slapped UMass Memorial Health Care Inc. with more than $800000 in fines and penalties today for “unfair and deceptive acts” by
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