Centene has fired Mark Sanders, CEO of its Texas subsidiary, after he told state lawmakers he hired private investigators to dig up information about members, lawmakers and journalists, The Dallas Morning News reported March 27.
“Following the hearing, Centene immediately launched an internal investigation to examine the conduct in question and ensure our current practices are fully aligned with our core values and ethical standards,” a Centene spokesperson said in a statement shared with Becker’s March 31. “In addition, Mark Sanders is no longer with the company.”
Mr. Sanders was CEO of Superior HealthPlan, Centene’s Texas subsidiary. The company is one of several managed care plans that administer Texas’s Medicaid program.
On March 26, Mr. Sanders testified before the Texas House Committee on Delivery of Government Efficiency. Lawmakers questioned Mr. Sanders over potential fraud and waste of taxpayer money connected to its Medicaid contracts and broached the subject of the company’s use of private investigators, according to the Texas Tribune.
Mr. Sanders told the committee that the company had used private investigators in the past, but that it no longer uses them. He said the information these investigators provided was not beyond what is publicly available and characterized the information as “routine” background checks.
“Our investigation to date indicates that all research in question was conducted through publicly or commercially available resources and limited to desktop research,” a Centene spokesperson told Becker’s.
The investigations took place from 2017 to 2019 and were allegedly ordered by Mr. Sanders, and included at least three Texas lawmakers, the Morning News reported. An outside firm also tried to obtain the divorce records of a state lawmaker, the outlet reported.
Background research has many business uses, the Centene spokesperson said, including helping to identify conflicts of interest and potential fraud, waste, and abuse. The research in question included “irrelevant and unnecessary personal information,” the spokesperson said.
“That was inappropriate and never should have happened. This occurred prior to 2019 and does not reflect the values or standards of our current leadership. For that, we offer our sincere and unequivocal apology,” the spokesperson said.
Superior HealthPlan also faced lawsuits over allegations the company had delayed and denied treatments during the time period the investigations took place. The lawsuits stemmed from a series of investigations published in the Morning News, according to the outlet.
In addition to lawmakers, Superior HealthPlan received background checks on Medicaid beneficiaries and providers featured in the articles and the journalist who wrote them.
At the hearing, lawmakers expressed concerns Superior HealthPlan was attempting to gain leverage on state lawmakers to secure state contracts and discredit members seeking unpaid claims, the Tribune reported.
In a March 27 statement, state Attorney General Ken Paxton said he is opening an investigation into Superior HealthPlan’s use of private investigators.
“The allegations concerning Superior’s actions, such as actions that were characterized as potentially blackmailing lawmakers to secure state contracts and surveilling private citizens to avoid paying legitimate claims, are deeply troubling,” Mr. Paxton said.
A Centene spokesperson told Becker’s the company found no evidence of legal violations in its investigation of the conduct. No individuals were followed or photographed, the spokesperson said, and suggestions materials were used for “leverage or blackmail are completely false.”
“We are taking concrete steps to reinforce ethical standards across the organization and ensure that all partners and practices reflect the integrity we expect of ourselves. We are committed to transparency, accountability, and earning back the confidence of our stakeholders,” the Centene spokesperson said.
This story was updated with additional comments from Centene on March 31.