MultiPlan, a healthcare cost management company, is undergoing a significant change as it rebrands itself to Claritev amidst legal challenges. The company has been facing a series of lawsuits from providers alleging price-fixing, leading to the decision to adopt a new name and identity.
The rebranded Claritev will soon be trading under a new ticker symbol, CTEV, on the New York Stock Exchange, as announced in a press release. This move comes in response to mounting legal pressures, including accusations of collusion with health insurers to underpay providers. These allegations have resulted in multiple lawsuits being consolidated in an Illinois district court, with the American Medical Association being one of the major parties involved.
Despite the rebranding, Claritev reassures that its core services, such as payment recommendations for healthcare services, claims accuracy verification, and surprise billing negotiations, will remain unchanged. The company’s spokesperson emphasized that the new name better reflects the diverse range of products and stakeholders it serves within the healthcare ecosystem.
Claritev’s legal troubles stem from claims of working with insurers to suppress payments for out-of-network care, as highlighted in lawsuits from prominent healthcare entities like AdventHealth and Community Health Systems. The AMA’s lawsuit alleged that the company collaborated with insurers to manipulate reimbursement rates, leading to artificially low payments for providers.
In response to these allegations, Claritev has vehemently denied any wrongdoing, citing a recent legal victory in a California lawsuit as a positive development in their defense. Despite facing financial challenges, including a significant net loss in the third quarter and high levels of long-term debt, the company remains focused on its operations and is set to report fourth-quarter earnings later this month.
The rebranding to Claritev represents a strategic shift for the company as it navigates through legal and financial hurdles. By adopting a new name and reaffirming its commitment to serving stakeholders across the healthcare industry, Claritev aims to position itself as a forward-thinking healthcare technology company in a rapidly evolving landscape.
