A day after a team of FBI agents, IRS agents and investigators with the federal Department of Health & Human Services participated in a raid on American Senior Communities' offices and the sprawling Carmel mansion of its CEO, James Burkhart, the company released a statement to the media saying it was in compliance with all federal, state and local regulations and was "fully cooperating" with the government's "review to ascertain the relevant facts":
American Senior Communities’ most important priority is to continue to provide excellent care to our patients and residents. ASC has been contacted by the federal government in connection with an investigation into certain individuals or practices. ASC is fully cooperating with the government and is conducting its own review to ascertain the relevant facts. ASC is in compliance with all federal, state and local laws and regulations and will continue to conduct its business in accordance with the highest standards of integrity.
Late yesterday, a statement released by Burkhart's high profile criminal defense lawyer, Larry Mackey, describes the government's investigation of his client and his company as a "cost review":
Thorough oversight of health care costs in this nation is in every citizen's interests and ASC will be an active partner with the government in this investigation. ASC cares for thousands of residents in scores of facilities across Indiana and has built a decade long record and reputation for excellence in caring for those most in need. We will keep our focus on our residents while we cooperate fully in this cost review.
Interest in the investigation is peaked because of ASC's important role as a private sector partner in operating the Marion Co. Health & Hospital Corporation's 59 nursing homes scattered across the state. That partnership enables the nursing homes operated by ASC on HHC's behalf to receive significantly enhanced reimbursements from the government for Medicaid/Medicare services compared to the reimbursement rates allowed to other long-term care facilities. The nursing homes are owned and controlled for all practical purposes by ASC, but by creating a fiction HHC is the proprietor, the higher reimbursement rates apply because of HHC's status as a publicly-owned hospital for the poor. HHC officials have always maintained this legal arrangement is perfectly legal. In a statement issued yesterday, HHC insists neither it nor its employees are target or the subject of the investigation.
5 comments:
Just a comment from this observer: I have never known the FBI to execute a search warrant until after it knows it will find evidence. The search warrant lets the target know they are onto them, thus the case is "practically proven" before they let the target know they are looking.
Could not agree more. Look at Durham. By the time the search warrants went down, there had already been a wiretap for several months. The search warrant and everything found via it is usually just icing on the cake.
They say: "All is well."
Translation: "oh oh."
You've been the canary in the mine on this scam, Gary. I had to laugh at how stupid our council members were tonight in questioning HHC CEO Matt Gutwein about their nursing home scam. Gutwein gave the council members the impression HHC owns these nursing homes. Not true. The underlying real estate is owned by ASC or another entity, leased to HHC, which acquires a nursing home license for the facility in its name and then leases the facility back to ASC to operate. HHC's ownership is a pure fiction just like you've explained on this blog to defraud the Medicaid system. The facility only gets the higher reimbursement rate based on the fiction HHC owns it. HHC has zero role in running any of these facilities. It splits the kickback for the higher reimbursement rates with ASC and uses the money for Eskenazi. HHC has no participation in the care of the facilities' residents. Contrary to Gutwein's claims, quality of care is below average at many of these nursing homes despite the much higher reimbursement rates they are receiving to care for those residents.
Someone needs to remind Kip Tew he has a duty to disclose his law firm has represented both ASC and the Health & Hospital Corporation when he decides to participate in discussions at city council meetings.
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