Jury Awards Verdict For Medical Mutual in Lawsuit that Details Racketeering in Public Bid Process

Case sheds light on fraud, records tampering by FrontPath and United Healthcare subsidiary HealthScope in bid process for city of Toledo

CLEVELAND--(BUSINESS WIRE)--A jury sided with Medical Mutual on March 12 in a lawsuit against FrontPath Health Coalition, a Toledo-based network, and HealthScope Benefits, a wholly owned subsidiary of United Healthcare. The jury found the defendants committed federal wire fraud, telecommunications fraud, tampered with records, and obstructed justice by falsely submitting bidding information to the city of Toledo in the 2015 and 2018 public bids for employee health benefits.

The lawsuit was originally filed against Perrysburg-based FrontPath in 2017, and Medical Mutual prevailed. The case was then consolidated with a case filed in 2022 against HealthScope, a healthcare management firm owned by the largest healthcare insurance organization in the United States. The case was heard in Lucas County Common Pleas Court.

The trial revealed that FrontPath and its bidding partner HealthScope conspired to form an enterprise that consisted of executives of both groups. The defendants, through the enterprise, improperly gained access to Medical Mutual’s confidential financial information, then used the information to manipulate the bid process to FrontPath’s advantage. The jury determined that this scheme proximately caused significant damages to Medical Mutual and resulted in the city of Toledo paying higher healthcare costs than it otherwise would have.

The jury awarded Medical Mutual more than $23 million in damages plus prejudgment interest, fees and costs.

“For us, this case has always been about the integrity of the bidding process and maintaining a level playing field for everyone,” said Tony Helton, Medical Mutual’s President and Chief Executive Officer. “In its decision, the jury championed the values of transparency and fairness — and emphasized the unwavering importance of good stewardship of taxpayer dollars. The judgment reflects that.”

Helton continued “We’re thrilled with the decision, because we know it’s a victory for public employees and taxpayers, as well as Medical Mutual. Our mission has always been to advocate for our communities, and a financial judgment will continue to allow us to make meaningful investments to benefit the citizens of Northwest Ohio.”

About Medical Mutual
Founded in 1934, Medical Mutual is the oldest and one of the largest health insurance companies based in Ohio. We provide peace of mind to more than 1.2 million Ohioans through our high-quality health, life, disability, dental, vision, and accident and critical illness plans. We offer fully insured and self-funded group coverage, including stop loss, as well as Medicare Advantage, Medicare Supplement and Individual and Family plans. Our status as a mutual company sets us apart from our competition. This means we don’t have stockholders, answer to Wall Street analysts, or pay dividends to investors. Our focus is entirely on our policyholders and their covered dependents, and we’re committed to developing products and services that help our members live healthier through all stages of life.