A large Florida-based health insurance provider has filed for bankruptcy. The move comes after months of state scrutiny and allegations of financial impropriety.<\/p>\n
Universal Health Care Group Inc., based in St. Petersburg, has filed for Chapter 11 protection. Meanwhile, state regulators seek to take over two subsidiaries of the company.<\/p>\n
The Florida Office of Insurance Regulation (FOIR) referred Universal Health Care Insurance Co. Inc. and Universal Health Care Inc. to the Division of Rehabilitation and Liquidation at the Department of Financial Services to initiate state receivership.<\/p>\n
The company has so far withheld consent for the takeover and will have the opportunity at a court hearing to demonstrate why it should not be required to go into receivership.<\/p>\n
Florida began formally investigating Universal in August, 2012, after auditing firm Ernst & Young refused to sign off on some of the company’s 2011 financial statements, alleging their internal controls contained \u201cmaterial weaknesses.\u201d<\/p>\n