Allina probe should send a clear message

Published 12:00 am Wednesday, September 26, 2001

With health insurance costs rising, it’s truly sad to see the extent of wastefulness perpetrated by a nonprofit health-care provider.

Wednesday, September 26, 2001

With health insurance costs rising, it’s truly sad to see the extent of wastefulness perpetrated by a nonprofit health-care provider. If anything good can come of the state’s investigation of Allina Health Systems, it’s a cautionary example for others that waste will not be tolerated.

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The health-insurance provider is accused of wasting millions and millions of dollars on corporate parties, retreats, and a parade of &uot;consultants&uot; who don’t appear to do much. It’s disgusting enough to see for-profit companies spending extravagantly while their workers go without fair pay increases, but it’s even more reprehensible for a non-profit agency.

Surely, Allina’s woes are not indicative of every health insurance company or every non-profit agency. Rather, they are surely very much the exception rather than the rule. But Attorney General Mike Hatch believes the corporate culture that allowed such spending may be present in other non-profit HMOs and insurance companies.

Insurance companies have become somewhat fond of pointing out that waste by consumers helps drive up costs. They say rising premiums are a product of expensive, on-demand health care services that are often overused. While there may be some truth in that, it’s also important that the companies themselves are fiscally wise. Passing the cost of a lavish corporate lifestyle on to people who need health care is unjustifiable.

Hatch’s investigation of Allina has been lengthy and expensive, but if it sends a message to other non-profits – if there are any who need the lesson – then it has been worthwhile.