Since MSM will follow the Fox News/O'Keefe story ---something for the water cooler (Medicaid fraud)

[underpants]

On March 19th, 1997, investigators from the FBI, the Internal Revenue Service and the Department of Health and Human Services served search warrants at Columbia/HCA facilities in El Paso and on dozens of doctors with suspected ties to the company.<3> Following the raids, the Columbia/HCA board of directors forced Rick Scott to resign as Chairman and CEO. <4> He was paid a settlement of $9.88 million, and left with 10 million shares of stock worth over $350 million, mostly from his initial investment.<5><6> In 1999, Columbia/HCA changed its name back to HCA, Inc.

In settlements reached in 2000 and 2002, Columbia/HCA pleaded guilty to 14 felonies. They admitted systematically overcharging the government by claiming marketing costs as reimbursable, by striking illegal deals with home care agencies, and by filing false data about use of hospital space.

HCA also admitted fraudulently billing Medicare and other health programs by inflating the seriousness of diagnoses and to giving doctors partnerships in company hospitals as a kickback for the doctors referring patients to HCA. They filed false cost reports, fraudulently billing Medicare for home health care workers, and paid kickbacks in the sale of home health agencies and to doctors to refer patients. In addition, they gave doctors "loans" never intending to be repaid, free rent, free office furniture, and free drugs from hospital pharmacies.<7> <8>

In late 2002, HCA agreed to pay the U.S. government $631 million, plus interest, and pay $17.5 million to state Medicaid agencies, in addition to $250 million paid up to that point to resolve outstanding Medicare expense claims.<9> In all, civil law suits cost HCA more than $2 billion to settle, by far the largest fraud settlement in US history.<10>

http://en.wikipedia.org/wiki/Hospital_Corporation_of_America

The Guilty Plea

The investigation of Columbia/HCA, which commenced with James Alderson's Qui Tam suit in 1993 dragged on for 10 long years and ended with the company paying US $1.7 billion dollars in fraud settlements and criminal pleas. Although three executives were found guilty they appealed and won. The chairman Richard Scott walked away with US $17 million and in spite of the extent of the fraud he was never charged. The fraud was settled in two stages, the first in 2000 and the second in 2003. The criminal settlement was made in the name of two defunct subsidiaries as a conviction in Columbia/HCA's name would have resulted in automatic exclusion from Medicare funding - perhaps one of the perks of political influence.

http://www.uow.edu.au/~bmartin/dissent/documents/health/columb_2003.html