LAWRENCEVILLE, N.J., Aug. 6 /PRNewswire/ -- Today, the Medical Society of New Jersey's ("MSNJ") served papers to United Healthcare ("United) demanding that it produce certain key personnel for deposition and produce various documents involved in the proposed merger of United and Oxford Health Plans ("Oxford"). These demands were made in preparation for the "trial de novo" - a new trial - on United's attempts to merge with Oxford. MSNJ also transmitted a letter to the Honorable Peter Harvey, Attorney General, state of New Jersey, requesting the intervention of his office to enjoin United from operating within the state of New Jersey since United is now operating as if the acquisition has been approved and, thus, in violation of the state law.
"Despite claims made by United that the acquisition of Oxford is complete - it is not," said Michael Kornett, Executive Director and CEO, MSNJ. "Through the filing of MSNJ's complaint on August 2, 2004, under New Jersey State law, the acquisition is automatically stayed. Regrettably, United Healthcare appears to be treating New Jersey state law with the same respect it does patients and physicians, and it has chosen to deny what is in fact reality."
In a letter transmitted to United's CEO, Mr. Robert Sheehy, Mr. Robert Conroy, Counsel to MSNJ, explained, "I hope that this will clear up any confusion United may have had as the nature or pendency of this action and the existence of a statutory stay of Commissioner Bakke's prior order allowing your company's acquisition of Oxford to go forward. For now, as I am sure, your counsel will advise that this acquisition is stayed."
On July 29, 2004, a mere 72 hours after closing the public record concerning the Oxford/United merger, Commissioner Bakke approved the $3.7 billion transaction that will directly impact the delivery of health care services for more than 1.4 million New Jerseyans currently insured by these companies. The projected statewide market share of the merged entity approaches 20%, although it will be significantly greater in New Jersey's six northern counties (Bergen, Essex, Passaic, Sussex, Union, Morris) where the vast majority of United's and Oxford's insured base is currently located. The market share in these regions violates anti-competitive guidelines set by the state Attorney General's office.
"We believe the Commissioner's approval of this merger was irresponsible and something that should be looked at very carefully," continued Kornett. "The AETNA/PruCare merger was reviewed by DOBI for close to 90 days and was approved, subject to 24 very specific conditions. The United-Oxford transaction was approved in 72 hours, with no conditions, except for a statement from the Commissioner urging United Healthcare to be a good corporate citizen in the state of New Jersey. Patients deserve better."
Kornett continued, "United has already initiated correspondence with NJ Physicians as if the merger has been executed. Given United's decision to begin to operate within the state of New Jersey, as if MSNJ's legal action does not exist, MSNJ has requested that the Honorable Peter Harvey, Attorney General, state of New Jersey, enforce the laws of New Jersey and take all appropriate action to enjoin United from continuing to act in violation of law," said Kornett.
Medical Society of New JerseyCONTACT: Matthew Stanton of MBI GluckShaw, +1-973-735-0528, or cell,+1-973-699-3115, for Medical Society of New Jersey
