Numerous documents filed by the Securities and Exchange Commission as far back as 1994 show Columbia/HCA was warned that payments made to physicians may be illegal. The warnings in the company’s annual public reports to stockholders were signed by Mr. Scott, evidencing his acknowledgment of the warnings, according to the report.
According to a 2001 Department of Justice lawsuit against Columbia/HCA, before it merged with HCA, Columbia executives were warned in May 1988 that payments made to physicians may be illegal, violating anti-kickback laws. However, HCA executives ignored the counsel’s advice about Columbia’s potential illegal activity and continued with the merger, according to the report.
When asked about the warnings, Mr. Scott said he doesn’t remember signing the reports and said “the warning language sounded like boilerplate written by SEC lawyers just to cover all bases,” according to the report.
Mr. Scott resigned as CEO of Columbia/HCA four months after the Federal Bureau of Investigation raided two Texas hospitals for Medicare fraud. The investigation ended in Columbia/HCA paying $1.7 billion in fines, with approximately $30 million in fines resulting from illegal kickbacks paid to physicians in the form of alleged sham loans and stock deals. Mr. Scott was never charged with a crime, according to the report.
Read the Miami Herald report about Mr. Rick Scott’s denial of HCA/Columbia’s healthcare fraud warnings.
Read other coverage about healthcare fraud by hospital companies:
– Former Executive of Hospital Management Company Faces Fraud Charges
