Vivek Garipalli, CEO of Clover Health, is said to have robbed millions of CarePoint patients

The latest “meme stock” does not sell video games or own cinema chains. It is a medical insurance company whose founder charges exorbitant charges to hospital patients. Has been accused of slapping.

Clover Health seems to have become more popular with traders on Reddit this month. It’s also because short-selling Hindenburg Research published a very critical report in February. report It accused the company of misleading shareholders by not disclosing the Justice Department’s aggressive investigation into “kickbacks and private third-party transactions.”

But lesser-known is that Clover Health CEO Vibek Galipari and his co-founder Jeffrey Mandler are working to build a medium-sized medical center in New Jersey. He’s also the owner of a care point that has been aimed at regulators and lawmakers for many years. From a blue-colored city to the most expensive hospital in the United States — reportedly close to $ 9,000 per bandage. I requested the teacher.

Clover CEO and CarePoint co-founder Vivek Garipalli bought a $ 11 million Hamptons home while running some of New Jersey’s most expensive hospitals.

According to official records, Galipari and Mandler acquired three bankrupt non-profit hospitals in Bayonne, Jersey City and Hoboken between 2008 and 2012 before establishing Clover in 2014 to earn care points. Established.

CarePoint has transformed the medical center into a commercial business model, withdrawing contracts with large insurance companies and allowing more patients in the emergency room to be classified as off-network. According to a 2016 report by POLITICO..

The man argued that such tactics were needed to save the hospital.

However, according to an analysis of federal billing data in 2013, after the overhaul, the Bayonne Medical Center charged more than luxury medical institutions such as the Cleveland Clinic, Cedars Sinai, and Mayo Clinic, making it the most expensive in the country. Ranked in hospitals. The Star Ledger..

One CarePoint hospital was named the most expensive hospital in the United States.
Google map

In 2014, the hospital charged teachers nearly $ 9,000 to bandage cuts that didn’t need to be sewn. NBC New York reportedThe following year, it charged a New Jersey man and his insurance company over $ 17,000 to treat a 2-inch cut with five or six stitches, NBC said.

The hospital also charged a notorious and high fee for more serious first aid. reportedThe cost of a complicational heart attack in Bayonne in 2011 was $ 137,483, compared to $ 29,940 at the nearby Hunterdon Medical Center, $ 48,399 at the Mountainside Hospital in Montclair, and Hackensack University Medical. It was $ 54,562 at the center.

Critics claim that these practices helped enrich the owners of care points. Paid $ 11 Million to Tory Birch’s Former Southampton Home In 2011, he was next to Calvin Klein, Rachel Ray and David Koch.

An aerial photograph of a $ 11 million Southampton home purchased by Clover Health CEO Vivek Garipalli in 2011.
Galipari has been accused of raising prices for sick residents in New Jersey and paid $ 11 million to Tory Birch’s former Southampton home in 2011.
Google map

In March 2019, the New Jersey Investigation Commission announced The eyebrow up report has been released CarePoint shows that between 2013 and 2016, it paid $ 157 million in “administrative fees” through the Business Web to multiple holding companies owned by Garipalli, Mandler, and Lawler.

“The management bodies of these related parties have no employees and have limited operating costs, which raises questions about the nature of the business when combined with other information,” said the observer.

At the same time, the company’s hospital fired workers and avoided repairing buildings that needed renovation, said a spokesperson for members of the two CarePoint medical centers. Told the jersey journal In 2019.

Until recently, Garden State’s dissatisfaction with CarePoint continued.

Jeffrey Mandler co-founded both Clover Health and CarePoint.

A group of parliamentarians representing Hudson County in February 2020 Called Governor Phil Murphy investigated CarePoint and said, “On the verge of bankruptcy at CarePoint Hospital, unreasonably large amounts of money from the business for personal gain at the expense of services and healthcare available to Hudson County residents. It is directly related to the owner’s decision to withdraw. ”

According to sources familiar with the situation, lawmakers who signed the letter have withdrawn their criticisms because they needed the cooperation of lawmakers and the hospital when the coronavirus pandemic broke out. Murphy’s office did not immediately respond to the request for comment.

In 2015, CarePoint Hospital charged a man in New Jersey and his insurance company more than $ 17,000 for the treatment of a 5- or 6-needle cut on a 2-inch cut. And in 2014, the hospital charged teachers nearly $ 9,000 to bandage cuts that didn’t need to be sewn.
Google map

But by June 2020 Stacked jersey journal A bitter editorial on CarePoint states that the operation “looks more like an investment strategy and greed than a care for the sick in need of hospital services.”

Andy Robinson, a spokeswoman for Clover Health, said in an email: [sic] I have no obligation to talk about this. “

“Sorry for the very old news. There’s nothing left to talk about,” Robinson insisted in a follow-up email.

A spokeswoman for Clover Health and ClearPoint was unable to interview Garipalli or Mandler.

Care point Announced in December Signed an intention to sell Hoboken and Jersey City hospitals to California-based investment group KPC Global Management.

A month later, Garipalli and Mandler published Clover Health at a valuation of $ 3.7 billion with the help of Chamath Palihapitiya of the SPAC King, boosting Garipalli’s net worth to more than $ 1 billion. According to Forbes quote..

In January, Clover Health went public with a valuation of $ 3.7 billion with the help of “King of SPAC” Chamath Palihapitiya.

Hindenburg’s report mentions accusations against CarePoint, but focuses on management issues at the new Galipari and Mandler companies, and Clover’s impressive sales statistics are a major private “major”. It was inflated for “business with privately related parties and misleading marketing for the elderly.”

The short seller said he ran a thin veil subsidiary, Seek Insurance, which claims that Clover provides unbiased information when seeking Medicare plans without disclosing its relationship with Clover.

Clover, who boasts Google’s parent company Alphabet as a backer and Chelsea Clinton as a board member, disagrees with Hindenberg’s claim.

However, as Mr. Hindenburg’s claim pervaded, stock prices fell from $ 14 in early February to less than $ 7 at some point in May.

But last week, everything changed with the help of Reddit day traders trying to narrow down Wall Street shorts. Clover’s share price soared to $ 28 before falling to about $ 15.20 on Thursday noon.

CarePoint spokesmen Eric Bloom and Jennifer Dobin did not respond to a request for up-to-date information on the deal.

Vivek Garipalli, CEO of Clover Health, is said to have robbed millions of CarePoint patients

Source link Vivek Garipalli, CEO of Clover Health, is said to have robbed millions of CarePoint patients

Back to top button