Article: Late News.(Lovelace Health Systems; Kaiser Permanente; Sun Healthcare Group; Clarent Hospital Corp.,)(Brief Article)

Cigna unit under investigation

Lovelace Health Systems, Albuquerque, a unit of Cigna Corp., is being investigated for possible Medicare cost-reporting fraud from 1990 to 1999. Cigna said the amount under investigation is small, representing about 2% to 6% of Lovelace's annual revenue, or roughly $10 million in 1999, the last year of the inquiry, and the insurer expects no material effect on its balance sheet. Cigna acquired Lovelace, which includes a hospital, physician network and health plan, in 1990. Lovelace is the only healthcare system that Cigna owns and accounted for less than 1% of its parent company's $19.1 billion in 2001 revenue. Cigna, the nation's ...

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