In this video framgrab image taken from AP Television News, Sen. Dianne Feinstein, D-Calif., speaks on the floor of Senate, Tuesday evening July 17, 2007 in Washington.
Posted on 07/25/2007 8:21:59 PM PDT by Libloather
Hospital group wants auditor inspected
PRG-Schultz, which has ties to husband of Sen. Feinstein, wrongly rejects Medicare claims, association says.
By David Whitney - Bee Washington Bureau
Last Updated 12:13 am PDT Saturday, July 21, 2007
WASHINGTON -- The California Hospital Association has asked for an inspector general's investigation of PRG-Schultz International, an auditing company it said is wrongly denying thousands of Medicare reimbursements at rehabilitation hospitals.
According to government records, the claims rejections so far top $100 million statewide.
**SNIP**
The Centers for Medicare and Medicaid Services, an agency of the Department of Health and Human Services Division, said in a letter to Sen. Dianne Feinstein, D-Calif., last week that it has no concerns about the Atlanta-based contractor.
Leslie V. Norwalk, acting CMS administrator, said that after reviewing the hospital association's complaints and PRG-Schultz's work, the agency "concluded that it is acting in accordance with Medicare law and statutes." Feinstein asked for the review in May.
The controversy has been awkward for the senator because an investment company controlled by her husband, Richard Blum, is a major owner of PRG-Schultz. Blum Capital Partners hiked its investments in the financially shaky firm about the time the company was expecting profits to flow in from the California contract.
Blum's company now holds a seat on the PRG-Schultz board.
Feinstein's spokesman, Scott Gerber, said the senator had no comment on the CMS letter.
Shortly after Feinstein's letter to the CMS raising questions about the auditing work, 36 California House Republicans and Democrats joined in a similar letter.
The letter questioned whether a bounty of between 20 and 25 percent PRG-Schultz receives on every claim rejection was tilting its decisions to near-total rejection of rehabilitation hospital care.
**SNIP**
(Excerpt) Read more at sacbee.com ...
In this video framgrab image taken from AP Television News, Sen. Dianne Feinstein, D-Calif., speaks on the floor of Senate, Tuesday evening July 17, 2007 in Washington.
There you go; and they are probably paying people do reject.
“The letter questioned whether a bounty of between 20 and 25 percent PRG-Schultz receives on every claim rejection was tilting its decisions to near-total rejection of rehabilitation hospital care.”
That doesn’t sound like a good way to get an objective evaluation...:^)
I’m surprised it’s even legal....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.