Campbell seeking privatization advice from criminal fraudster
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d ...@spam.me.spammer (Albino Protagonist)
Jeff Lee Vancouver Sun Friday, April 19, 2002 Premier Gordon Campbell has backed away from seeking advice from the architect of the largest takeover of public and private hospitals in the U.S. after learning the executive was at the heart of one of the largest health-care fraud cases in U.S. history.
But critics say Campbell's invitation to Richard Scott to come to B.C. is an indication of the future of health care in the province.
"I think the premier has been caught red-handed," said Hospital Employees Union business manager Chris Allnut. "The fact that he sought Scott's advice is either an incredible lapse in judgment or a frightening glimpse into his government's plan to privatize health care in B.C." Campbell met with Scott while he was in New York in February at the World Economic Forum. After the meeting, Campbell invited Scott, the former chief executive officer of Columbia/HCA Healthcare to come to B.C. to give him advice on overhauling the health care system, saying he was "an invaluable resource for government leaders, like myself, who see the need to reform and rebuild health care." But the premier was apparently unaware that Scott was at the centre of a fraud case and that Columbia/HCA, the largest hospital corporation in the country, has so far paid out more than $840 million US in criminal and civil penalties.
The company, now under new management, has since unwound many of Scott's programs and is returning to its core business of operating community-based hospitals.
The board of Columbia/HCA forced Scott and several colleagues to resign in 1997 after the Federal Bureau of Investigation launched a second set of devastating raids on Columbia hospitals, leading to Department of Justice allegations the health care company had defrauded and overbilled the U.S. government's Medicare system. Some parts of the case are still unresolved.
The government's interest in Scott's aggressive privatization program came at the same time B.C.'s five health authorities were given global budgets and told to pare down their expenses. The authorities have been warning they will have to close or amalgamate some hospitals and reduce or cancel many services.
The government has been keeping details of the health budget summaries secret, but is expected to unveil details next week.
Scott's resignation ended his 10-year quest to turn Columbia/HCA into a national multi-billion-dollar health care provider. By the time he left, the $20-billion corporation had acquired 343 hospitals, 570 home care agencies, 150 outpatient surgery centres, doctors' offices and outpatient services in 38 states and employed 285,000 people. It had also generated tremendous backlash from non-profit health agencies and the public, which saw it as a behemoth corporation obsessed with commercializing health care.
In an interview Thursday, Campbell said he was unaware of the DOJ's investigations, or Scott's connection to the case at the time of their meeting, and learned of it only after the Hospital Employees Union asked for his agenda in a freedom of information request.
He said his subsequent decision to withdraw his invitation to Scott had nothing to do with his new-found knowledge of the U.S. investigation. Instead, he said, he believes Scott's advice is redundant.
"I don't see that we need him. I think the health authorities are well on target for what they are doing," Campbell said.
A secretary at Scott's Stamford, Conn. office said he was away on business and could not be reached for comment.
Campbell admitted he was taken aback when he learned of the investigation.
However, he said Scott explained to his staff that it was a "corporate problem" that didn't involve him.
However, the federal U.S. investigation focused on a number of concepts and programs Columbia/HCA developed while Scott was in charge, including having doctors invest in company facilities, the expansion of home health care centres and billing methods for outpatient and laboratory services.
Scott formed Columbia Hospital Corp. in 1987. After a series of major acquisitions, Columbia merged with Hospital Corp. of America in 1994 to become the largest for-profit hospital chain in the country.
Campbell said he met with Scott after being advised he some good ideas for reforming health care.
"He had some very interesting ideas on improving productivity in health care, and in providing speedier service to patients, which is what this is all about
-- improving service to people," Campbell said. "It's something we are always interested in." However, Allnut said Campbell should not have met with Scott in the first place.
He said Scott's published record of commercializing the U.S. health care industry "and making money out of peoples' illness" is not one the province should seek to copy.
"It is behaviour like this by the premier that is destroying the public's ability to trust Campbell's ability to deliver sound health care," he said.
Campbell said the government is committed to developing private-public partnerships in health care, and cited as an example the proposal to have a private company build a hospital in Abbotsford.
"Stephen Green" sd.gr...@shaw.ca
Union Propaganda !!
...
"mr.e" an...@rogers.com
I'm just curious, but does anyone else wonder whether Stephen Green is actually as stupid as his posts suggest?
newell new...@NOSPAMvcn.bc.ca
Unions! Who needs them ??
They only brought us:
--a social safety net
--health and safety standards on the job.
--a decent minimum-wage
-- guaranteed health-care
--protection from unscrupulous employers and big government.
Unions rock!
"Nyder" ny...@nyder.ca
You're the one whose stupid, Shut the **** up!
Nyder ...
d ...@spam.me.spammer (Albino Protagonist)
June 2, 1997 Washington, D.C. - Today, Rep. Pete Stark (D-CA) responded to the resignations of Richard Scott and David Vandewater from their positions as the top two executives of Columbia/HCA. The executives' resignations come in the wake of the Federal government's ongoing investigation of the nation's largest for-profit hospital chain.
"For over two years I've called for Federal investigations into possible fraudulent activities by Columbia/HCA. Those investigations should proceed with vigor. The resignation of two executives won't ensure that abuses stop and that patients are protected," said Rep. Stark.
Recent press reports indicate on-going merger discussions between Columbia HCA and Tenet, a typical strategy upon discovery of m***ive fraud in the healthcare industry.
"I've watched the health care fraud efforts of unscrupulous providers for over twenty years. There is a clear trend by these providers, and Columbia is following the script to the letter. In this trend, a hospital corporation is investigated, allegations of fraud made, and charges filed. The hospital settles with the Federal government for reduced payment; the CEO of the hospital is fired; the hospital closes or merges with another hospital; and the old hospital reopens under a new name while continuing the cycle of fraud.
We've got to break the pattern of abuse," continued Stark.
Stark noted a long history of questionable behavior by Tenet's predecessors (formally National Medical Enterprise and OrNda) and Columbia. In fact, yesterday's Wall Street Journal reported that Tenet's OrNda will pay $12.7 million to settle a whistle blower law suit alleging the company's hospitals defrauded Medicare through illegal contracts and kickbacks.
"If the Gambino crime family and the Genovese crime family merged and called themselves the Smith's, I am sure the Government would continue to monitor their activity. When two health care corporations with a long history of managers who abused the Medicare program merge, do you ***ume that the new corporate culture will immediately change," asked Stark.
Rep. Stark insists that the merger between Columbia and Tenet/OrNda should not be allowed to go forward without strict scrutiny by the federal government.
Today, Stark wrote letters to Attorney General Janet Reno, FBI Director Louis Freeh and HHS Inspector General June Gibbs Brown requesting a full and continuing compliance audit of both parties. If questions of fraudulent billing and practices are found, the merger attempt should be halted and appropriate sanctions applied.
d ...@spam.me.spammer (Albino Protagonist)
Forbes.com, Dec 15, 2000 NEW YORK - The point of for-profit hospitals was always that they would be more cost-efficient than their counterparts run by universities and charities. Also, they'd be better at billing. The efficiency part is an open question, but HCA -
The Heathcare Company has proved very good at billing. Too good.
Yesterday, the nation's largest hospital chain, known until recently as Columbia/HCA Healthcare (nyse: HCA - news - people), pleaded guilty to a variety of fraud charges. It admitted to bilking various government programs and agreed to pay a total of $840 million in fines and penalties. The fraud settlement is the largest in U.S. history, breaking the old record held by Drexel Burnham. Even so, parts of the investigation into the company's practices remain unsettled.
The guilty plea follows a seven-year federal investigation that resulted in charges being filed in five different federal courts in Florida, Texas, Georgia and Tennessee, where HCA is headquartered. The fraud revealed by that investigation ran deep within HCA's way of doing business. Speaking at a news conference yesterday, U.S. Attorney General Janet Reno said about the plea deal, "It's a simple message--if you overbill the U.S. taxpayer, we're going to make you pay it back, and then some." The company admitted to systematically overcharging the government by claiming marketing costs as reimbursable, by striking illegal deals with home care agencies, and by filing false data about how hospital space was being used.
The company increased Medicare billings by exaggerating the seriousness of the illnesses they were treating. It also granted doctors partnerships in company hospitals as a kickback for the doctors referring patients to HCA. In addition, it gave doctors "loans" that were never expected to be paid back, free rent, free office furniture, and free drugs from hospital pharmacies.
The investigation and the plea is an obvious blow to a company that became a Wall Street darling by promising to bring first-cl*** business practices to the hospital sector, still dominated by not-for-profits. Under former Chief Executive Richard Scott, it bought hospitals by the bucketful and promised to squeeze blood from each one.
Scott was forced to resign in the wake of the initial fraud charges in 1997.
Dr. Thomas Frist Jr., a founder of the original Hospital Corp. of America and the brother of U.S. Sen. Bill Frist, R-Tenn., was brought in to replace him as chairman and CEO.
Frist said, "Today's action represents one of the last steps needed to put the Columbia investigation behind us and allows us to move forward, maintaining our focus on providing quality patient care." Another positive note: The government agreed to structure the deal in a way that makes HCA still eligible to participate in Medicare.
But before the company can go forward, there are still issues about its past.
The plea involves only corporate criminal liability. The government may still investigate and prosecute any individuals connected with the crimes.
So far, two mid-level HCA executives in Florida have been convicted of fraud charges, but no top executives have been charged. As part of the plea agreement, the company will cooperate in the ongoing probe that Deputy ***istant FBI Director Thomas Kubic called "one of the FBI's highest priority white-collar crime investigations."
d ...@spam.me.spammer (Albino Protagonist)
And you're the one who's already expressed your admiration for 'successful' white-collar criminals. But not those unsuccessful poverty-stricken junkies rotting in jail.
You and Stephen Green are a couple of real gems...
"neil tupper" neil_tup...@hotmail.com
I'm not sure what you mean. Do you mean that the story is made up, that its is real but the information that Jeff Lee reported is wrong, or that Jeff Lee knew he was wrong. Just how do the unions figure in this?
Neil
d ...@spam.me.spammer (Albino Protagonist)
They're the only ones on the ball enough to hand journalists leads they're too lazy to find themselves.
d ...@spam.me.spammer (Albino Protagonist)
What kind of advice do you think Campbell asked Scott for? Advice on how to defraud taxpayers? I doubt it, the playbook has already been published. What Campbell is seeking advice on which regulations to tinker with and how to set up dummy administration entities to avoid getting caught the way Scott did.
d ...@spam.me.spammer (Albino Protagonist)
The only claim the union came up with was that Campbell sought advice with Scott (after he had been convicted of fraud). That little tidbit mustve been leaked by someone in the Liberal camp.
"Nyder" ny...@nyder.ca
Success is Success, I'm not interested in the moral lapses of winners.
Nyder ...
winston smith wsm...@mol.com
No surprise to me! Campbell and his cronies will stoop as low as possible to achieve the Fraser Institute's agenda!
The P3 Public Private Partnership idea is rigged from the start, it is basically setting up a monopoly for business to get rich off the backs of the sick and those in need of care. Shameful bloody idea, why it seems treasonous to me. Can't we throw the Liberals in Jail or something?? ;)
winston smith wsm...@mol.com
Yes its also funny how the right could care a less if the cost of administration doubles and those salaries themselves increase 27%. I don't see them whining about Zannons $700K hand out. Talk about a skewed sense of reality! Just how much will the Liberals will save by cutting services to a wage of $8.00/hr? Enough to make the difference to the administrators, who will shell game the cash to themselves.
Well... when they all have there belongings stolen from them daily, by those who are below the poverty level. I guess we won't feel to sorry for the fat cat bastards, will we??
Hey Liberal's show us a graph of the Hospital Administration's numbers and wages for the last 5 years up to and including today! Include HEABC also since they leach 10 million a year or more by now too. (They will never release that data to the Public, notice that!!) They have added yet another layer of Managers with this new round of Regionalization. Now they will close Hospitals and beds to pay for these persons who do basically nothing! We the Public stand for this shit? Next they will say the expenses are to high and we will have to privatize everything.
The Liberals are creating expense on purpose, to justify their pro privatization agenda and shove it down our throats!
They have lied again, as they are not reducing administration in health care!
THEY MUST BE STOPPED!!
"mr.e" an...@rogers.com
Translation: Gimme mine and **** everyone else.
What a ****ing loser.
"neil tupper" neil_tup...@hotmail.com
I guess you would have been a BIG supporter of Stalin and the early Hitler then . . .
Neil
d ...@spam.me.spammer (Albino Protagonist)
Maybe Nyder's weight-lifting injected enough testosterone into his system to change his mind since sept 13, 2001 when he wrote this: "Hmm sounds like you and Bin Laden think a lot a like, haha As usual "Might Makes Right". Yawn!"
"Stephen Green" sd.gr...@shaw.ca
================================================================ Talk about fraud -- NDP Clark, NDP Sohota; NDP Bingogate, NDP Lumbergate; NDP Ferrygate; NDP Busgate; NDP Hydrogate; and the list goes on. Get a grip Karen you NDP types live in the swill of fraud.
"Stephen Green" sd.gr...@shaw.ca
========================================================== Got to walk before you run Karen --- The NDP sprinted to nowhere, had and have no plan and go us into a terrible state of financial and legislative disaster.
But of course those with a one track mind, like most NDP and Union types lose context. The old excuse "just because" becomes a ralling cry, without any though or sense.
d ...@spam.me.spammer (Albino Protagonist)
Theres plenty of thought and sense in the articles I posted on the track record of Columbia/HCA. Pete Stark, is the US congressman who lead the investigation and stated; "I've watched the health care fraud efforts of unscrupulous providers for over twenty years. There is a clear trend by these providers, and Columbia is following the script to the letter. In this trend, a hospital corporation is investigated, allegations of fraud made, and charges filed. The hospital settles with the Federal government for reduced payment; the CEO of the hospital is fired; the hospital closes or merges with another hospital; and the old hospital reopens under a new name while continuing the cycle of fraud.
We've got to break the pattern of abuse," Does that sound like the 'just because' rallying cry of 'NDP and union types'?
Pete Stark is a successful businessman (unlike Stephen Green), and former banker. He's a graduate of MIT with a degree in engineering and the University of California with a Master's degree in business administration (MBA). In 1963, he founded Security National Bank in Walnut Creek. The bank grew from a small storefront operation to a $100 million financial institution with branches in Alameda and Contra Costa Counties. Stark sold his interest in the bank after his election to Congress. A veteran, Stark served in the Air Force.
Stark's community, church, and civic activities have included: Director, Common Cause; Chairman, Board of Trustees, Starr King School of Ministry; Board Member, Housing Development Corporation; Board Member, Council for Civic Unity, and many others.
Sounds like a very conservative man to me. Sometimes even conservatives can muster up the guts to stand up for the principals on which they were elected (ie trying to stop criminals from siphoning billions of dollars of taxpayer's money into offshore accounts).
"Stephen Green" sd.gr...@shaw.ca
sd.gr...@shaw.ca ============================================================ But of course if you read the bloody article, one discovers that it was a chance dicussion in New York; Campbell did not know the guys background; invited the guy to BC; but when Campbell discovered the guys background, the meeting was cancelled.
So where's the problem, other than a bunch of Unionists and NDPe'ers getting all riled up over nothing.
goo ...@integrate.com (David Deilley)
Please point out which parts of this Vancouver Sun article were not true. If I have been mislead, I need your help so I can write a letter to the editor and complain.
goo ...@integrate.com (David Deilley)
If this question (above) appeared on a referrendum ballot, I would vote "YES."
goo ...@integrate.com (David Deilley)
Hey - Stephen Green!
Isn't FORBES magazine one of those union propaganda newsletters.
That Steve Forbes guy - he's a total pinko, right?
Way to call it , Stephen.
With Lambourn retired from the USENET, you are no longer in secoind place!
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