Sunday, September 16, 2007

News-Leader- Cox setting aside money for grand jury probe

The Springfield News-Leader reports CoxHealth officials have set aside $26 million as a potential settlement in the case which has brought Cox under the microscope in a grand jury investigation:

A form prepared for the IRS and a statement by a Cox official show that Cox has been preparing for a possible payout since fiscal 2005, although Cox officials have declined through the years to publicly discuss the effects of the investigation on the Springfield-based health system.

The federal probe, which includes looking at possible Medicare billing fraud, began in 2004 and became public in 2005.

Asked about the IRS form, Cox Chief Financial Officer Jake McWay confirmed that a $26 million entry under a category "loss contingency reserve" is, in his words, "a liability reserve for a potential government settlement."

The grand jury investigation was first revealed in the June 8, 2005 Turner Report.


Anonymous said...

Lets don't settle this with a huge fine, fine them $1. and lock up a bunch of thieves. Thats why medicare and medicaid are so screwed up. Some poor guy on the street that owed a $1000. bill was no doubt sued so they could stockpile the fine money.
They are thieves and they know it, otherwise they wouldn't have ratholed the money.

Anonymous said...

FYI....The News-Leader first reported on this in April 2005, two months before the turner report.

Randy said...

The first confirmation of the grand jury investigation came in the lawsuit and I reported on the lawsuit the day it was filed.