Attorney General May Replace Medica Board Members

By Cecilia Green

Published on August 16, 2005

The dispute between Attorney General Mike Hatch and Medica, the million-member HMO began in 2001, when Allina, Medica's parent company was accused of wasting millions on employee perks and consultants. Allina agreed to reorganize the Medica board, and Hatch personally appointed the new board members, which included a court justice, a former publish service commissioner, and a CEO.

Now, the Attorney General is accusing the same board members he nominated of abusing their status by giving themselves raises and electing themselves into permanent office.

The Medica board members disagree, stating that they have been working hard to get the company back on its feet.

The judge whose decision is expected within the next couple weeks will decide whether or not Hatch may replace Medica's board of directors, or if his management ended once the new board members were chosen.

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