U.S. Healthcare Accused of Breach of Contract

U.S. Healthcare, a unit of Aetna Inc., has been accused in a civil suit of breaching contracts with 24 suburban and upstate New York hospitals through routine late payment of claims, the plaintiffs’ lawyer said. The suit is believed to be the first time that a large number of hospitals in a region have joined together to compel a managed- care company to make payments that are due them, according to the attorney, Fred Miller. Aetna is the nation’s largest health insurer, providing benefits for one in 10 Americans. The suit, which was filed in state Supreme Court in New York, seeks $95 million in compensatory and punitive damages against the unit of the Hartford, Conn.-based company, Miller said. In a statement, Aetna said it “would strongly disagree” with any suggestion that it intentionally delayed payments. “In recent months, we have engaged in good-faith negotiations with many of these hospitals,” the statement said. “We are disappointed that this group of hospitals has filed this suit.” Aetna shares fell $1.38 to close at $62.69 on the NYSE.