The lawsuit, filed by Florida attorney Steve Andrews, contends that in March 2004, a company owned and directed by Rick Scott, Solantic LLC applied for a Florida Medical Care License for six clinics.  The application listed Dr. Mark Glencross as the “Medical Director” for each of the clinics. Dr. Glencross, who had been an employee at Solantic, claimed he had never been asked nor given consent for his name to be included on the application.  And he was never the Medical Director for the clinics.  Under Florida law, it is a felony of the third degree to file false or misleading information on facility licensure applications. Glencross filed a lawsuit against Solantic in 2008 alleging fraud.  Although it is uncommon for top executives to be questioned in cases such as this, Rick Scott was personally deposed on April 6, 2010 – six days before announcing his Gubernatorial bid.  Almost immediately after the deposition, Solantic settled the lawsuit with Glencross for an undisclosed sum.  As part of the agreement, the videotaped deposition of Scott was not filed with the Duval County Clerk’s office. The video is currently in the custody of Collier Court Reporting.  According to a letter from Collier to Mr. Andrews, they are unable to release the video without the consent of both parties.  Mr. Andrews states that Dr. Glencross’ attorneys have consented, but lawyers for Rick Scott are blocking the release and attempting to bury the deposition.

2010 08 09 Collier Reporting response ltr to SRA

Andrews’ lawsuit has been filed against Collier Court Reporting.  He declares that because of the “history of illegal and criminal activity by Rick Scott” he should be considered a “public hazard.” – a legal designation under Florida law.  The logic is Scott’s illegal activities could potentially put patients lives at risk.   These are serious charges, and if the Court agrees, it could order the video be made available for public  inspection.

To back his claims of “illegal and criminal history” Andrews cites fraud indictments brought by the Department of Justice in 1997 against Hospital Corporation of America (HCA), a previous company formed and run by Rick Scott.  HCA pled guilty and was fined a record $1.7 billion for various acts of fraud and corruption.

In addition, 13 lawsuits were filed against HCA by patients during the time that Scott was in control of the company.

In addition to the criminal case against HCA, former employee John Schilling instigated a whistleblower lawsuit against HCA.  Scott was scheduled to be deposed in that case but guilty pleas were entered prior to his appearance.

Schillings claims the FBI were hoping to nail Scott.  In his book he states, “[FBI Agent Joe] Ford held no pity for the men who had been indicted and told me he hoped the FBI investigation might eventually lead to an indictment against Rick Scott.”  Scott, however, failed to respond to official requests to be interviewed. Scott was ousted as CEO of HCA in 1997. Because the Sarbanes Oxley Act had not yet been passed by Congress, Scott was able to evade personal accountability for HCA’s crimes and instead left the company with over $300 million in severance.

On the campaign trail, Scott claims he has taken responsibility for HCA’s crimes, and has “learned lessons” from their mistakes. But according to new sources, allegations of fraud go beyond HCA and involve other companies controlled by Scott. A new whistleblower, Dr.  Randy Prokes, provided information last month that included multiple allegations of fraud and illegal activity. this time at Solantic. The allegations Prokes brings forward are eerily similar to those committed by HCA, including Medicare, Medicaid, TriCare, and private insurance fraud, upcoding, and overbilling. If history is any indicator, law enforcement will once again be looking into Rick Scott – and by that time he may be the Republican nominee for Governor of Florida.

Scott has many questions to answer, and this may begin with him releasing the video deposition he provided only days before entering this race. Republican leadership in Florida, including Speaker of the House Larry Cretul, have called on Scott to release all details and depositions from his involvement in the various Solantic lawsuits. We will see if he complies, and if not, we can only ask what he has to hide.

With this type of progress and plan ratings, KP would be a natural fit and even help facilitate the transition to a single-payer system. Even the Democrats in the Senate seem to think that, after demonizing the insurance companies, they could overlook the insurance industry’s greed and other flaws and have them run their new compromise “non-public” option plan.

Furthermore, KP’s chairman and CEO George Halvorson, who took the helm in 2002, has met with Obama and has had several meetings with key figures in the health care debate, including:

March 27–Meeting with Keith Fontenot, who manages the financial resources of government agencies related to health. He oversees funds for Medicare, Medicaid, all U.S. public health agencies, and the entire Health and Human Services Department, from the Food and Drug Administration to the National Institutes of Health.

June 5–Meeting with Peter Orszag, director of the CBO.

July 23–Meeting with Kathleen Sibelius, Secretary of Health and Human Services (HHS)

July 24–Meeting with Sarah Fenn, who is a $36,000-a-year White House assistant. Fenn is an attorney and also served as the state legal Voter Protection Director for the Obama campaign in Indiana, Kentucky, and New Hampshire, as well as campaign field staff in Iowa, Idaho, Texas, and Florida.

Halvorson was the only insurance executive to meet with Sebelius.

If KP were to administer the government buy-in plan, then what about KP’s very disturbing patterns in business practices and ethics. KP was fined $1.9 million for Medicare and Medicaid fraud in Hawaii. KP also gave Bayer advice on how to go about a private-labeling scheme to defraud Medicaid of millions. This scheme led to a $257 million settlement in 2003, after being charged by federal investigators with overcharging for the antibiotic Cipro. Also involved in this type of relabeling scheme was GlaxoSmithKline and its relabeling of the drug Flonase, a nasal spray, and Paxil, an anti-depressant for KP. Flonase was manufactured and sold by Glaxo Wellcome and Paxil was manufactured and sold by SmithKline Beecham; the two companies merged and became GlaxoSmithKline in December 2001.

In addition to fraud, according to a KP watchdog website, KP has a very dark past littered with lawsuits, care denials, and patient deaths, including infants. Regardless of how KP got to those numbers securing a number one ranking, other rankings give KP a one-star rating—denoting worse than average patient outcomes.

KP also has a patient dumping problem under Halvorson.

Moreover, the testimony of patients and former KP physicians speak for themselves, and in an effort to change their poor public image, KP signed a $40 million deal with Campbell Ewald in 2004 to launch a multi-year, $40 million image campaign intended to reverse a slide in membership. However, KP can try to cover up its dangerous practices with a slick marketing campaign, but their problems persist, and in recent news, KP has had many serious accusations and problems leveled against it:

From the KaiserVictims.org website:

Kaiser Permanente fined for breach of privacy
(May 15, 2009) Kaiser Permanente fined $250,000 by the state for
illegally viewing medical records. Almost two dozen workers including doctors were involved
in this improper access. Via CNN.com

Electronic Medical Records can be deadly
(April 28, 2009) What happens when a software error miscalculates dosage?
The software manufacturer takes no responsibility and innocent lives are at risk.
Much care and major improvements deemed necessary for EMR that Obama is pushing for. Via Denver Channel

Kaiser Colorado Dollar Reserves Found Excessive For Non-Profit
(June 24, 2008) Kaiser Permanente will return $155 Million to clients in Colorado.
Deal reached between state insurance commissioner and hospital with payments spread over three years. Via The Denver Post

Kaiser Sued For AIDS Discrimination
(June 5, 2008) Lawsuit details ‘toxic’ work environment and a corporate
culture that is an antithesis of the Thrive marketing plan. Via The Examiner

Kaiser Surgeon Gets Six Months
(May 9, 2008) A Kaiser Permanente surgeon has been sentenced for perjury.
Apparently same surgeon was addicted to cocaine for several years while performing duties at Kaiser. Via SF Chronicle

Kaiser among insurers ordered to reinstate canceled coverage
(April 18, 2008) The Department of Managed Health Care ordered insurers to reinstate coverage for 26 cases where the consumers were clearly innocent and coverage had been rescinded wrongfully. Via SF Chronicle

Kaiser Permanente doctor in unprecedented criminal case
(March 23, 2008) A Kaiser Permanente surgeon accused of ‘hastening’ death of a patient is awaiting a criminal trial. Via Ventura County Star

Kaiser Permanente doctor suspended
(March 1, 2008) The hospital suspends its perinatologist Hamid Safari.
Safari is alleged to be responsible for two infant deaths. Via LA Times

Federal Health Inspectors Criticize Kaiser for Lack of Action
(January 26, 2008) According to federal health inspectors two babies may still be alive today if Kaiser Permanente had acted on staff complaints. Via LA Times

Patient Allegedly Dumped by Kaiser Facility Dies
(December 21, 2007) A Livermore man that was in Kaiser’s care was discharged and dropped off at a homeless shelter. His family searched for him for 16 days before he was found and then admitted into Kaiser intensive care, where he passed away. Via Allbusiness.com

Kaiser Refuses to Cover Cancer Patient

(December 15, 2007) Mill Valley resident and Sonoma Country Deputy District Attorney
had asked for a biopsy at Kaiser Permanente, but they did not do it. She now has Stage 4 breast cancer. Hope in the form of a clinical trial has been presented to her by M.D. Anderson doctors, whom she turned to, being dissatisfied with Kaiser Permanente. Kaiser has denied her request for coverage. Via San Francisco Chronicle

Kaiser to pay $1.8 Million in Malpractice case
(December 12, 2007) A 45-year-old man was misdiagnosed at Kaiser Permanente
and suffered permanent brain damage. Via OC Register

Drug Allergy Death at Kaiser
(November 29, 2007) Family of woman that died of an allergic reaction has filed a claim
against Kaiser Permanente for failing to recognize and treat her allergic reaction
Via mddailyrecord.com

Health Insurer bonuses tied to policy cancellations
(November 16, 2007) Health Net Inc was fined $1 Million for withholding information. The insurer lied to investigators about tying employee bonuses to the number of contracts canceled after policy holders got sick. It is under investigation along with Kaiser Permanente (who paid $325,000 in fines), PacifiCare and Blue Shield of California. Via sfgate.com

Finally, the Senate has played the American people with this so-called compromise. Even if they strip it out, the compromise is still disingenuous, because the powers that be can lower the age requirement through other means. Understand that lawmakers will propose the mother of all legislation, then settle for exactly what they want. Oldest trick in the political playbook. Progressives have wanted the Medicare age to drop to 55 for years. In addition, to know that KP executives are major players in healthcare reform is disturbing.

To think what a $40 billion non-profit insurance company could do to the US healthcare system—knowing what they have already done and continue to do should send a shiver down your spine.

Medicare paid up to $92 million for medical services ordered by dead doctors, some of whom had been dead for more than 10 years

Social Security Administration sent out $250 stimulus checks to 10,000 people who are deceased, some of which have been dead for several decades

U.S. Department of Agriculture distributed $1.1 billion in federal farm aid to the estates or companies of deceased farmers

San Francisco receives federal funding for AIDS patients who died decades ago

Dallas Housing Authority spent federal funds to subsidize housing for 45 deceased clients

Today, the Committee voted on an amendment from Sen. Cornyn which would have delayed expansions in Medicaid until steps had been taken to get its error/fraud rate down to 3.9%, the average of all government programs. Details below:

Cornyn Amendment #C30 to America’s Healthy Future Act of 2009

Short Title: Reducing waste, fraud, and abuse in the Medicaid program.

Description of Amendment: Prior to implementing the mandatory Medicaid program expansions in the Chairman’s Mark, the Secretary of Health and Human Services must certify that states have implemented program integrity and quality improvement measures specified in the Chairman’s Mark and that the Medicaid program’s average Payment Error Rate Measurement is less than 3.9 percent.

Offset: No offset needed.

 Republicans

CHUCK GRASSLEY -yes, ORRIN G. HATCH -yes, OLYMPIA J. SNOWE -yes, JON KYL -yes, JIM BUNNING -yes, MIKE CRAPO -yes, PAT ROBERTS -yes, JOHN ENSIGN -yes, MIKE ENZI -yes, JOHN CORNYN -yes

Democrats

MAX BAUCUS -no, JOHN D. ROCKEFELLER -no, KENT CONRAD -no, JEFF BINGAMAN -no, JOHN F. KERRY -no, BLANCHE L. LINCOLN -no, RON WYDEN -no, CHARLES E. SCHUMER – no, DEBBIE STABENOW -no, MARIA CANTWELL -no, BILL NELSON -no, ROBERT MENENDEZ – no, THOMAS CARPER -no

Not Agreed to (10-13)

Grassley Amendment #C8

Purpose:

An amendment to require presentation of identification in applying for Medicaid benefits

Description of Amendment:

The amendment amends Title 19 of the Social Security Act to require an applicant (or the parent or guardian in the case of a child under the age of 18) to present at the time of application for Medicaid or CHIP benefits government-issued photo identification and that identification must be authenticated with the issuing agency.

Republicans

CHUCK GRASSLEY – yes, ORRIN G. HATCH – yes, OLYMPIA J. SNOWE – yes, JON KYL – yes, JIM BUNNING – yes, MIKE CRAPO – yes, PAT ROBERTS – yes, JOHN ENSIGN – yes, MIKE ENZI – yes, JOHN CORNYN – yes

Democrats

MAX BAUCUS – no, JOHN D. ROCKEFELLER – no, KENT CONRAD – no, JEFF BINGAMAN – no, JOHN F. KERRY – no, BLANCHE L. LINCOLN – no, RON WYDEN – no, CHARLES E. SCHUMER – no, DEBBIE STABENOW -(no vote) MARIA CANTWELL – no, BILL NELSON – no, ROBERT MENENDEZ – no, THOMAS CARPER – no,

Not Agreed to (10-13)

Fraud in Medicaid and Medicare is estimated at around $100 billion a year. Actually proving that someone is who they say they are when applying for benefits would surely trim at least some of that.