MONARCH HEALTHCARE: Sues PacifiCare For Fraud, Breach Of Contract
Orange County-based Monarch Healthcare Medical Group has filed suit against PacifiCare Health Systems Inc., hoping to claim a portion of the rebates and discounts pharmaceutical companies awarded Pacificare. The physician group's suit, filed Oct. 20 in Orange County Superior Court, "charges the HMO with fraud, unfair business practices and breach of contract." Specifically, the suit alleges that PacifiCare concealed information on drug discounts and rebates from the medical groups with which it does business. Bloomberg News/Los Angeles Times reports that Monarch seeks some $1 million in compensation and more than $10 million in punitive damages. Both companies declined to comment on the case (12/11). Click here for past coverage of Monarch.This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.