Allina review: Allegations, response

Published Thursday, March 22, 2001
Allina review: Allegations, response

Star Tribune

A financial review of Allina Health System raises questions about whether it is responsibly managing scarce health care dollars, says Minnesota Attorney General Mike Hatch. A legal motion he filed Wednesday alleges that:

Allina executives spent millions of dollars on golf, travel, consultants and other questionable expenses.

For every dollar in premiums paid to Allina health plans, only about half is actually used to pay for members' medical care.

The company altered its financial statements and its management incentive payment policies so that executives could receive their annual bonuses.

Allina responds

Allina's and Medica's administrative expenses are in line with industry norms. Audits conducted by other regulatory agencies have not discovered widespread problems.

Many examples of lavish expenses cited by Hatch either contain errors or were taken out of context.

A court should oversee Hatch's audit, which has become costly and unfair to Allina.