INSURANCE

Two Firms File Suit Against NME: Metropolitan Life Insurance Co. and Aetna Life Insurance Co. filed suit against Santa Monica-based National Medical Enterprises, alleging racketeering and widespread fraud in NME’s practices in recruiting and admitting patients for its psychiatric hospitals. The suit follows similar suits by eight other insurers and was filed in U.S. District Court in Dallas. The insurers charge that NME gave kickbacks to referring physicians and kept patients hospitalized until their insurance ran out, regardless of need. NME has said the suits are attempts by insurers to avoid paying legitimate bills.