McHenry County Blog

A press release from the U.S. Attorney’s Office:

CHICAGO U.S. ATTORNEY’S OFFICE COLLECTED $142.6 MILLION
IN CIVIL AND CRIMINAL ACTIONS IN FISCAL YEAR 2011

CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois collected approximately $142.6 million in fiscal year (FY) 2011, Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, announced today. The collection of more than $129 million in criminal and civil debts, coupled with an additional $13.6 million collected through asset forfeiture, means that the office’s total collections this past fiscal year amounted to more than four times its annual budget of approximately $34.7 million. Over the last four fiscal years combined, the office has collected nearly $693 million on behalf of the United States.

Nationwide, the U.S. Attorneys’ offices collected $6.5 billion in criminal and civil actions during FY 2011, surpassing $6 billion for the second consecutive year. A portion of this amount, $1.3 billion, was collected in shared cases in which one or more U.S. Attorneys’ offices or department litigating divisions were also involved. The $6.5 billion represents more than three times the appropriated budget of the combined 94 offices for FY 2011.

“I appreciate the dedication of people in this office, especially the often overlooked work of our Civil Division and our Financial Litigation Unit, to protecting the public and recovering funds for the federal treasury and for victims of federal crime,” Mr. Fitzgerald said.

“We will continue to hold accountable those who seek to profit from their illegal activities. Our attorneys and staff have managed to not only pay for the entire budget of the office but to provide even greater sums to victims and to the government to fund other programs.”

During FY 2011, the U.S. Attorney’s Financial Litigation Unit in Chicago collected $16.4 million in criminal actions, including

• more than $1 million in criminal fines;
• ore than $3.4 million in restitution owed to the federal government; and
• more than $11.6 million in non-federal restitution owed to victims, including the victims of various investment frauds and Ponzi schemes.

In civil actions, the office collected $112 million, including more than $108 million from affirmative enforcement actions, with more than $103 million of that amount resulting from health care fraud cases. The office’s Financial Litigation Unit also collected more than $2 million in civil post-judgment recoveries during the fiscal year.

On the civil side, in March 2011, the office collected $85 million from Medline Industries, Inc., of Mundelein, to settle a whistleblower’s claims alleging that Medline made fraudulent payments to hospitals and other medical providers that bought supplies from Medline paid for by Medicare and Medicaid. Medline allegedly improperly labeled the payments as discounts, rebates, gifts and charitable donations to fraudulently induce the purchase of supplies. The whistleblower received $23.375 million as his share of the settlement.

In February, 2011, BlueCross BlueShield of Illinois paid the United States $9.5 million to settle False Claims Act allegations.

The settlement resolved claims that BlueCross BlueShield wrongly terminated insurance coverage for private duty skilled nursing care for medically fragile, technologically dependent children, in order to shift the costs of such care to the Medicaid program, which funds a special program designed to provide home care for children at risk of being institutionalized.

The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims.

When defendants are convicted and sentenced in criminal cases, judges must impose restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. The U.S. Attorney’s Office is authorized to make efforts to collect criminal debts for 20 years after defendants are released from custody.
Statistics from the Justice Department indicate that collections in criminal actions totaled $2.66 billion in restitution, criminal fines, and felony assessments.

While restitution is paid by Courts directly to the victim, criminal fines and felony assessments are paid to the Justice Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In additional to criminal and civil debts, the U.S. Attorney’s Office in Chicago collected approximately $13.6 million in criminal and civil forfeitures, contributing to the nationwide collection of $1.68 billion in asset forfeiture actions in FY 2011. Forfeited assets are deposited into either the Department of Justice Asset Forfeiture Fund or the Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.

The statistics also indicate that $3.83 billion was collected nationwide in civil actions. The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.

In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.

The nationwide collection totals for the U.S. Attorneys’ offices for FY 2010 and FY 2011 combined is $13.18 billion, which represents nearly a 52 percent increase over the FY 2008 and FY 2009 combined total of $8.55 billion.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at http://www.justice.gov/usao/reading_room/foiamanuals.html.

State Rep. Mike Tryon explained the extent of Medicaid fraud to a Crystal Lake Town Hall Meeting Tuesday night. State Senator Pam Althoff can be seen next to him.

Last night State Rep. Mike Tryon estimated the fraud in the Illinois Medicaid program at $5-$6 billion at his joint Town Hall Meeting with State. Sen. Pam Althoff.

But this case is mainly about Medicare, the Federal medical program for seniors.

The good guy in the picture is a fellow doctor, Dr. Lokesh Chandra, who filed a whistle blowing suit in 2006. He will received 17.5% of any payments from the bad guy.

How greedy was the bad guy?

“(Dr. Sushil) Sheth regularly submitted claims seeking payment that, when added together, had him providing more than 24 hours of medical services and treatment in a single day.

Could it be significant that among the investigating agencies listed at the bottom of the press release that no Illinois state officials are included?

FORMER AREA PHYSICIAN AGREES TO $20 MILLION SETTLEMENT

WITH U.S. COVERING CIVIL FALSE CLAIMS ALLEGATIONS

BY WHISTLE-BLOWER

CHICAGO — A former Chicago area physician, who was sentenced last month to five years in prison for stealing millions of dollars from Medicare and more than 30 other public and private health care insurance programs, has agreed to a $20 million settlement with the United States covering related civil claims, federal officials announced today.

Sushil Sheth, a cardiologist who had privileges at three area hospitals, had pleaded guilty to health care fraud for lying thousands of times to Medicare and other insurers in order to receive millions of dollars he did not earn for patients he never treated.  Sheth used the fraud proceeds to live a lavish lifestyle, purchasing a suburban mansion, property in Arizona, luxury automobiles, and investing in various venture capital opportunities.

Sheth, 50, of Burr Ridge and whose office was in Flossmoor, is scheduled to begin serving his 60-month prison term next month.  He was also ordered to pay restitution totaling approximately $13 million, and he agreed to forfeit property and funds totaling more than $11.3 million that the government seized from him.

In the separate civil case, Sheth has agreed to pay the United States $20 million to settle allegations of fraudulent billing between 2002 and 2007, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.

A federal False Claims Act lawsuit filed in 2006 by a fellow physician was unsealed after the United States negotiated the settlement.

The agreement calls for the whistle-blower, Dr. Lokesh Chandra, to receive 17.5 percent of any amounts collected from Sheth by the United States or the State of Illinois.  United States of America and the State of Illinois, ex rel. Lokesh Chandra v. Sushil A. Sheth, M.D., 06 C 2191 (N.D. Ill.)

According to the civil lawsuit, Dr. Chandra contracted with Sheth to have him cover hospital rounds and patients when Dr. Chandra was out of town or otherwise unavailable.

Sheth saw patients for Dr. Chandra and others at Ingalls Memorial Hospital in Harvey and Advocate South Suburban Hospital in Hazel Crest.  Sheth also had privileges at St. Margaret Mercy Healthcare Centers in Hammond.

Between 2002 and 2007, Sheth submitted false claims seeking payment from Medicare and Medicaid for services at the highest level of in-patient cardiac care when, in fact, those services were not performed.

The settlement was reached on behalf of Dr. Chandra and

• the U.S. Department of Health and Human Services Office of Inspector General;
• the Office of Personnel Management (OPM), which administers the Federal Employees Health benefits Program;
• the Railroad Retirement Board Office of Inspector General;
• TRICARE Management Activity (U.S. Defense Department); and
• the Illinois Department of Health and Family Services.

The agreement provides that any amounts recovered will be distributed as follows:

• Medicare — 97.776 percent;
• Medicaid — 0.004 percent;
• OPM — 2.106 percent;
• TRICARE — 0.114 percent.

It also provides that any amounts paid to the United States as criminal restitution will be credited against the $20 million judgment.

Under the federal False Claims Act, defendants may be liable for triple the amount of actual damages and civil penalties between $5,500 and $11,000 for each violation.  Individual whistle-blowers may be eligible to receive between 15 and 25 percent of the amount of any recovery in cases where the government intervenes.

In the criminal case, Sheth admitted using his hospital privileges to obtain information about patients without their knowledge or consent.

He then hired individuals to bill Medicare and other insurance providers for medical services that he purportedly rendered to patients whom he knew he never treated.

Typically waiting almost a year after the treatment was purportedly provided, Sheth submitted more than 14,800 false claims for reimbursement for providing the highest level of cardiac care — requiring hands-on treatment in an intensive care unit — on multiple days during patients’ hospital stays.

Sheth regularly submitted claims seeking payment that, when added together, had him providing more than 24 hours of medical services and treatment in a single day.

The investigation was conducted by

• the U.S. Department of Health and Human Services Office of Inspector General in Chicago;
• the Chicago Office of the Federal Bureau of Investigation;
• the U.S. Department of Labor Office of Inspector General in Chicago;
• the Chicago Regional Office of the U.S. Department of Labor Employee Benefits Security Administration, and
• the Inspector General’s Office of the Office of Personnel Management and
• (the Inspector General’s Office of) the Railroad Retirement Board.

The government was represented in the civil case by Assistant U.S. Attorney Linda Wawzenski.

Attorney General Lisa Madigan’s press release headline uses the word “kickback” to describe what was going on between owners of the Crystal Lake Open Advanced MRI, other centers and some referring doctors.

The way the scheme worked,

“radiology centers entered into sham ‘lease’ agreements with doctors under which the doctors paid a reduced rate for MRI and CT scans, charged the patient’s insurance carriers a higher rate, and then pocketed the difference.”

No more.

And a penalty for doing so with the $840,000 state share going to “ will be being “distributed in grants to benefit low income persons in need of health care services.”

The rest will go to whistle-blower John Donaldson, who started the suit which Madigan joined. The press release is below:

ATTORNEY GENERAL MADIGAN SETTLES MRI KICKBACK CASE FOR $1.2 MILLION

Settlement Would End Kickback Practice

Chicago — Illinois Attorney General Lisa Madigan has reached a settlement with a group of fourteen Illinois radiology centers that allegedly paid illegal kickbacks to doctors in exchange for referrals. The settlement, entered in court today, is the result of a lawsuit filed by the Attorney General in 2007 and requires the defendants to stop paying the illegal kickbacks and to pay money damages, restitution and penalties.

Under the settlement, MIDI, LLC and fourteen Open Advanced MRI centers will pay a total of $1.2 million to settle the State’s lawsuit.

The State’s share – $840,000 – will be distributed in grants to benefit low income persons in need of health care services. The settlement also explicitly prohibits the radiology centers from operating under any kickback agreements with referring physicians in Illinois.

“When patients are referred to MRI facilities, they should be able to feel confident that the referrals were made for medical reasons only,” Madigan said. “This settlement sends a strong message that medical professionals cannot engage in schemes to line their pockets, at the expense of providing the best patient care,” Madigan said.

In 2007, Attorney General Madigan intervened in a lawsuit against various radiology centers and then filed an amended complaint against the centers.

The lawsuit alleged that the radiology centers entered into sham “lease” agreements with doctors under which the doctors paid a reduced rate for MRI and CT scans, charged the patient’s insurance carriers a higher rate, and then pocketed the difference. The lawsuit asserted that the defendants’ actions violated the Consumer Fraud and Deceptive Business Practices Act, as well as Illinois’ anti-kickback law, the Insurance Claims Fraud Prevention Act.

The 14 Open Advanced MRI Centers involved in this settlement are:

1.Open Advanced MRI of Chicago (150 North Michigan Avenue, Chicago)
2.Open Advanced MRI of Tinley Park (Tinley Park, IL)
3.Open Advanced MRI of Crystal Lake (Crystal Lake, IL)
4.Open Advanced MRI of Round Lake (Round Lake Beach, IL)
5.Open Advanced MRI of Plainfield (Plainfield, IL)
6.Open Advanced MRI of Lincoln Park (1355 W. Fullerton, Chicago, IL)
7.Open Advanced MRI of Deer Park (Deer Park, IL)
8.Open Advanced MRI of Skokie (Skokie, IL)
9.Gold Coast MRI at Washington Square (Chicago, IL) (facility is now closed)
10.Open Advanced MRI of North Shore (Skokie, IL) (facility is now closed)
11.Open Advanced MRI of Oak Brook (Westmont, IL)
12.Open Advanced MRI of Schaumburg (Schaumburg, IL)
13.Advanced Imaging of Deerfield (Deerfield, IL) (facility is now closed)
14.Open Advanced MRI of Wheaton (Wheaton, IL)

In addition to the MIDI settlement, Madigan has settled with five other imaging companies.

Assistant Attorneys General Janet Doyle and Dalila Bentley of the Special Litigation Bureau are handling the case for Madigan’s office.

Previously, Madigan’s office made a settlement amounting to $56,817 with LLC in Lake in the Hills, according to the Daily Herald.

Attorney General Lisa Madigan’s press release headline uses the word “kickback” to describe what was going on between owners of the Crystal Lake Open Advanced MRI, other centers and some referring doctors.

The way the scheme worked,

“radiology centers entered into sham ‘lease’ agreements with doctors under which the doctors paid a reduced rate for MRI and CT scans, charged the patient’s insurance carriers a higher rate, and then pocketed the difference.”

No more.

And a penalty for doing so with the $840,000 state share going to “ will be being “distributed in grants to benefit low income persons in need of health care services.”

The rest will go to whistle-blower John Donaldson, who started the suit which Madigan joined. The press release is below:

ATTORNEY GENERAL MADIGAN SETTLES MRI KICKBACK CASE FOR $1.2 MILLION

Settlement Would End Kickback Practice

Chicago — Illinois Attorney General Lisa Madigan has reached a settlement with a group of fourteen Illinois radiology centers that allegedly paid illegal kickbacks to doctors in exchange for referrals. The settlement, entered in court today, is the result of a lawsuit filed by the Attorney General in 2007 and requires the defendants to stop paying the illegal kickbacks and to pay money damages, restitution and penalties.

Under the settlement, MIDI, LLC and fourteen Open Advanced MRI centers will pay a total of $1.2 million to settle the State’s lawsuit.

The State’s share – $840,000 – will be distributed in grants to benefit low income persons in need of health care services. The settlement also explicitly prohibits the radiology centers from operating under any kickback agreements with referring physicians in Illinois.

“When patients are referred to MRI facilities, they should be able to feel confident that the referrals were made for medical reasons only,” Madigan said. “This settlement sends a strong message that medical professionals cannot engage in schemes to line their pockets, at the expense of providing the best patient care,” Madigan said.

In 2007, Attorney General Madigan intervened in a lawsuit against various radiology centers and then filed an amended complaint against the centers.

The lawsuit alleged that the radiology centers entered into sham “lease” agreements with doctors under which the doctors paid a reduced rate for MRI and CT scans, charged the patient’s insurance carriers a higher rate, and then pocketed the difference. The lawsuit asserted that the defendants’ actions violated the Consumer Fraud and Deceptive Business Practices Act, as well as Illinois’ anti-kickback law, the Insurance Claims Fraud Prevention Act.

The 14 Open Advanced MRI Centers involved in this settlement are:

1.Open Advanced MRI of Chicago (150 North Michigan Avenue, Chicago)
2.Open Advanced MRI of Tinley Park (Tinley Park, IL)
3.Open Advanced MRI of Crystal Lake (Crystal Lake, IL)
4.Open Advanced MRI of Round Lake (Round Lake Beach, IL)
5.Open Advanced MRI of Plainfield (Plainfield, IL)
6.Open Advanced MRI of Lincoln Park (1355 W. Fullerton, Chicago, IL)
7.Open Advanced MRI of Deer Park (Deer Park, IL)
8.Open Advanced MRI of Skokie (Skokie, IL)
9.Gold Coast MRI at Washington Square (Chicago, IL) (facility is now closed)
10.Open Advanced MRI of North Shore (Skokie, IL) (facility is now closed)
11.Open Advanced MRI of Oak Brook (Westmont, IL)
12.Open Advanced MRI of Schaumburg (Schaumburg, IL)
13.Advanced Imaging of Deerfield (Deerfield, IL) (facility is now closed)
14.Open Advanced MRI of Wheaton (Wheaton, IL)

In addition to the MIDI settlement, Madigan has settled with five other imaging companies.

Assistant Attorneys General Janet Doyle and Dalila Bentley of the Special Litigation Bureau are handling the case for Madigan’s office.

Previously, Madigan’s office made a settlement amounting to $56,817 with LLC in Lake in the Hills, according to the Daily Herald.

Credit a blog of the New York Daily News with pointing me to a Cook County law suit for $4.2 million, plus punitive damages, against Mutual Bank.

At issue is an analysis by Kenneth Conner of an appraisal by Adams Appraisal Service which Mutual Bank employee Conner knew was in the file, but which disappeared.

Conner performed real estate review and analysis for seven years and documented appraised valuation excesses exceeding $60 million in his last 2½ years of work, the suit states.

In June of 2005 a loan was approved to Rita Rezko, now-convicted Tony Rezko’s wife, so Mrs. Rezko could purchase the lot next to the home Barack Obama was buying.

An appraisal said the lot was worth $625,000 and a loan was made for $500,000. Bank President Amrish Mahajan, along with other bank officers, approved the loan.

January 4, 2006, Rita Rezko entered into an agreement to sell the Obamas 10 feet of the lot. Whistle blower Conner was asked to perform an appraisal review of the Adams appraisal.

Conner concluded that the appraisal overvalued the lot by $125,000, that the lot was worth no more than $500,000.

MAI Howard Richter appraised the property at the time for $490,860. The suit points out that Richter’s appraisal and Conner’s conclusion of what the lot was worth were “substantially similar.”

Conner believes that the close relationship between the Obamas, the Rezkos and Mutual Bank’s CEO meant that his super-boss knew of the Richter appraisal.

Conner knew his analysis was in the property’s file, as was the Adams’ appraisal.

The suit reveals that the bank got a Grand Jury subpoena on October 19, 2006, asking for the file on the empty lot and other Rezko banking information.

Conner says his analysis of the property’s value was removed from the file before it was handed over to the Feds. He says that an appraisal check list dated June 15, 2005, signed by James P. Murphy was substituted for it.

Conner’s report was also excised from the file when the FDIC audited it, the suit says, being replaced with the “Murphy checklist.”

Conner did not notice the removal of his analysis until 2007.

On June 18, 2007, he sent this email to Murphy:

“I spent time trying to track down work of mine that should be a particular high profile loan file, though it is not—having been replace by a checklist.”

He sent a second email a month later.

In an October 15, 2007, communication to Human Resources Department representative Lana Schlabach, Conner referenced,

“Resentment over my mentioned discovery of the removal/replacement of an appraisal review that I conducted. That appraisal review contained substantial observations and suggestions. The transaction and parties were high profile in the media. I am under the impression that the FBI has since looked at the file…

“I remember conducting the appraisal review and I remember what I concluded. If the FBI were to ask me about such I would tell them the truth. I never rescinded or amended my findings. When I noticed that my appraisal review was missing, I felt an obligation to point that out, even if the mention was counterintuitive in effect.”

Eight days later Conner was fired, the reason given that Conner had frozen a trading account pledged as security by a third party on an unrelated Rezko $500,000 line of credit.

Conner says he “discerned the bank’s collateral was in jeopardy,” according to the legal papers.

Conner’s suit claims the following laws were broken:

• False bank statement by bank officers
• False statement willfully overvaluing property
• Bank fraud
• Witness retaliation
• Willful violation of a lawful subpoena
• FDIC regulations
• Similar Illinois laws and state banking regulations

Conner claims his firing was of a retaliatory nature.

Credit a blog of the New York Daily News with pointing me to a Cook County law suit for $4.2 million, plus punitive damages, against Mutual Bank.

At issue is an analysis by Kenneth Conner of an appraisal by Adams Appraisal Service which Mutual Bank employee Conner knew was in the file, but which disappeared.

Conner performed real estate review and analysis for seven years and documented appraised valuation excesses exceeding $60 million in his last 2½ years of work, the suit states.

In June of 2005 a loan was approved to Rita Rezko, now-convicted Tony Rezko’s wife, so Mrs. Rezko could purchase the lot next to the home Barack Obama was buying.

An appraisal said the lot was worth $625,000 and a loan was made for $500,000. Bank President Amrish Mahajan, along with other bank officers, approved the loan.

January 4, 2006, Rita Rezko entered into an agreement to sell the Obamas 10 feet of the lot. Whistle blower Conner was asked to perform an appraisal review of the Adams appraisal.

Conner concluded that the appraisal overvalued the lot by $125,000, that the lot was worth no more than $500,000.

MAI Howard Richter appraised the property at the time for $490,860. The suit points out that Richter’s appraisal and Conner’s conclusion of what the lot was worth were “substantially similar.”

Conner believes that the close relationship between the Obamas, the Rezkos and Mutual Bank’s CEO meant that his super-boss knew of the Richter appraisal.

Conner knew his analysis was in the property’s file, as was the Adams’ appraisal.

The suit reveals that the bank got a Grand Jury subpoena on October 19, 2006, asking for the file on the empty lot and other Rezko banking information.

Conner says his analysis of the property’s value was removed from the file before it was handed over to the Feds. He says that an appraisal check list dated June 15, 2005, signed by James P. Murphy was substituted for it.

Conner’s report was also excised from the file when the FDIC audited it, the suit says, being replaced with the “Murphy checklist.”

Conner did not notice the removal of his analysis until 2007.

On June 18, 2007, he sent this email to Murphy:

“I spent time trying to track down work of mine that should be a particular high profile loan file, though it is not—having been replace by a checklist.”

He sent a second email a month later.

In an October 15, 2007, communication to Human Resources Department representative Lana Schlabach, Conner referenced,

“Resentment over my mentioned discovery of the removal/replacement of an appraisal review that I conducted. That appraisal review contained substantial observations and suggestions. The transaction and parties were high profile in the media. I am under the impression that the FBI has since looked at the file…

“I remember conducting the appraisal review and I remember what I concluded. If the FBI were to ask me about such I would tell them the truth. I never rescinded or amended my findings. When I noticed that my appraisal review was missing, I felt an obligation to point that out, even if the mention was counterintuitive in effect.”

Eight days later Conner was fired, the reason given that Conner had frozen a trading account pledged as security by a third party on an unrelated Rezko $500,000 line of credit.

Conner says he “discerned the bank’s collateral was in jeopardy,” according to the legal papers.

Conner’s suit claims the following laws were broken:

• False bank statement by bank officers
• False statement willfully overvaluing property
• Bank fraud
• Witness retaliation
• Willful violation of a lawful subpoena
• FDIC regulations
• Similar Illinois laws and state banking regulations

Conner claims his firing was of a retaliatory nature.

Let’s assume everything is on the square at the Illinois Health Facilities Planning Board.

OK. Forget about the fixing of the new hospital that Wisconsin’s Mercy Health Care System wanted to build in Crystal Lake to compete with local biggie Centegra Health Care System’s dominant hospitals in McHenry County.

Governor Rod Blagojevich appointed a new board, didn’t he?

Problem solved, right?

No reason to be suspicious when Naperville’s Edward Hospital gets turned down for the third time, right?

“Edward contends that the hospital is necessary because of the area’s rapid growth and because one-third of the patients at its crowded Naperville campus come from the Plainfield area,”

Chicago Tribune reporter James Kimberly reports.

Edward Hospital admitted projecting that Will County would grow.

Naughty. Naughty.

“…acting health facilities board Chairman Susana Lopatka said population projections are not certain to materialize and even if they did, there would be insufficient demand to support a new hospital by 2015.”

Naturally, nearby hospitals objected.

Just as they did in McHenry County.

Irrelevant, of course, is that Edward Hospital CEO Pam Meyer Davis blew the whistle on Stuart Levine’s little shakedown game.

Oh, yes.

“…the board and its staff became contentious at times.”

I’ll bet.

The only cure for this regulatory agency is abolition, something I tried, but failed to accomplish in 1993.

No chance of that now.

We are in the age of “government knows best” again.

Maybe we’ll end up with another warehouse full of basketballs that won’t get given to Chicago kids, just like I was told two days ago that we had in Chicago during Lyndon Johnson’s Great Society.

Let’s assume everything is on the square at the Illinois Health Facilities Planning Board.

OK. Forget about the fixing of the new hospital that Wisconsin’s Mercy Health Care System wanted to build in Crystal Lake to compete with local biggie Centegra Health Care System’s dominant hospitals in McHenry County.

Governor Rod Blagojevich appointed a new board, didn’t he?

Problem solved, right?

No reason to be suspicious when Naperville’s Edward Hospital gets turned down for the third time, right?

“Edward contends that the hospital is necessary because of the area’s rapid growth and because one-third of the patients at its crowded Naperville campus come from the Plainfield area,”

Chicago Tribune reporter James Kimberly reports.

Edward Hospital admitted projecting that Will County would grow.

Naughty. Naughty.

“…acting health facilities board Chairman Susana Lopatka said population projections are not certain to materialize and even if they did, there would be insufficient demand to support a new hospital by 2015.”

Naturally, nearby hospitals objected.

Just as they did in McHenry County.

Irrelevant, of course, is that Edward Hospital CEO Pam Meyer Davis blew the whistle on Stuart Levine’s little shakedown game.

Oh, yes.

“…the board and its staff became contentious at times.”

I’ll bet.

The only cure for this regulatory agency is abolition, something I tried, but failed to accomplish in 1993.

No chance of that now.

We are in the age of “government knows best” again.

Maybe we’ll end up with another warehouse full of basketballs that won’t get given to Chicago kids, just like I was told two days ago that we had in Chicago during Lyndon Johnson’s Great Society.

$36.7 million is flowing into public treasuries across the country and into one whistleblower’s pocket as a result of actions by the Chicago office of the U.S. Attorney.

Coordinating with the 49-state National Association of Medicaid Fraud Control Units, CVS Caremark Corp. has agreed to the multi-million 2000 through 2006 ettlement initiated by a whistle blower suit.

No liability was admitted, however.

The gist of the suit was that tablets of Zantac were substituted for capsules.

Here’s the earl;y 2001 cost differential: Illinois Medicaid was charged $79.80 instead of $17.10 per 60 tablet prescription for a difference of $62.70.

“Switching medication from tablets to capsules might seem harmless, but when that is done solely to increase profit and in violation of federal and state regulations that are designed to protect patients, pharmacies must know that they are subjecting themselves to the possibility of triple damages, civil penalties and attorney fees,” U.S. Attorney Patrick Fitzgerald said.

Illinois state government gets $241,110. The Feds get $21 million.

Whistleblower Bernard Lisitza will receive $4,309,330.74—almost 12% of the settlement–as his share of the federal and state settlements. Pharmacist Lisitza also initiated a similar, unrelated lawsuit, settled in November 2006, against Omnicare, Inc. of Covington, Kentucky.

Assistant United States attorney Linda A. Wawzenski handled the case for Fitzgerald.

You can read the whole press release here.

$36.7 million is flowing into public treasuries across the country and into one whistleblower’s pocket as a result of actions by the Chicago office of the U.S. Attorney.

Coordinating with the 49-state National Association of Medicaid Fraud Control Units, CVS Caremark Corp. has agreed to the multi-million 2000 through 2006 ettlement initiated by a whistle blower suit.

No liability was admitted, however.

The gist of the suit was that tablets of Zantac were substituted for capsules.

Here’s the earl;y 2001 cost differential: Illinois Medicaid was charged $79.80 instead of $17.10 per 60 tablet prescription for a difference of $62.70.

“Switching medication from tablets to capsules might seem harmless, but when that is done solely to increase profit and in violation of federal and state regulations that are designed to protect patients, pharmacies must know that they are subjecting themselves to the possibility of triple damages, civil penalties and attorney fees,” U.S. Attorney Patrick Fitzgerald said.

Illinois state government gets $241,110. The Feds get $21 million.

Whistleblower Bernard Lisitza will receive $4,309,330.74—almost 12% of the settlement–as his share of the federal and state settlements. Pharmacist Lisitza also initiated a similar, unrelated lawsuit, settled in November 2006, against Omnicare, Inc. of Covington, Kentucky.

Assistant United States attorney Linda A. Wawzenski handled the case for Fitzgerald.

You can read the whole press release here.