Care One’s, HealthBridge’s Union ‘Extortion,’ Fraud Loss Upheld

Care One Management LLC and HealthBridge Management LLC failed to show that aggressive tactics SEIU-affiliated unions used at the companies’ nursing homes and assisted-living facilities in the Northeast violated the Racketeer Influenced and Corrupt Organizations Act or amounted to fraud, a divided Third Circuit ruled.

The tactics employed by 1199SEIU United Healthcare Workers East, New England Health Care Employees Union District 1199, and two other unions included an advertising campaign that accused Care One of providing below-average care and HealthBridge of overbilling, excessively administering anti-psychotic medications, and having an unduly high employee turnover, the court said.

The tactics also included ...