Story Published:
Oct 4, 2007 at 2:14 PM CST
Story Updated:
May 1, 2008 at 4:55 PM CST
SPRINGFIELD --Federal
prosecutors say CoxHealth has mischaracterized and overstated its cooperation in
an ongoing federal investigation of the hospital's Medicare billing practices.
The investigation could lead to criminal charges against current and
former administrators of the health care company.
The prosecutors’
statements are in the latest set of documents in a civil lawsuit in U.S.
District Court. Roger Cochran and
Dennis Morris, former employees of CoxHealth, sued for damages because they said
they were wrongfully terminated for being whistle blowers.
They say Cox fired them because they cooperated with the federal criminal
investigation. Cox administrators say they were fired because they didn’t
do their jobs well.
Prosecutors and CoxHealth want
a judge to delay discovery – pre-trial interviews and subpoenas of documents
– in the civil lawsuit because it might interfere with the criminal
investigation. Attorneys for the
fired employees fear such a delay would hurt their case against the hospital.
CoxHealth is the largest
employer in the Springfield metropolitan area, with about 9,000 employees at its
hospitals, clinics and other health care facilities.
In news releases and an open letter to the community, CoxHealth has said
it's fully cooperated with every aspect of the criminal investigation, including
self-reporting the results of its own internal investigation of the billing
practices in question. Some of the
questions about the billing practices are about whether CoxHealth paid doctors
for services they didn’t provide.
Prosecutors say CoxHealth
didn’t disclose potential problems with the billing practices until after it
learned an investigation was underway. According to the prosecutors’ filing, CoxHealth has
not disclosed the results of its internal investigations to investigators.
That is important because prosecutors say they assured CoxHealth that the
company itself would not be criminally prosecuted if it provided complete access
to those results. That guarantee
would not have applied to current and former administrators.
Finally, prosecutors say,
CoxHealth should not claim it has cooperated fully in every facet when
administrators and other employees have declined to be interviewed.
The court document specifically names CoxHealth President and Chief
Executive Officer Robert Bezanson as one who declined to be interviewed without
being granted immunity that his statements would not be used against him.
The prosecutors’ filing
goes on to say that other employees, in addition to the CEO, have declined to be
interviewed by government investigators. In
summary, the government says Cox would be well served to refrain from
overstating its cooperation publicly.
On Monday, Laurie Cunningham,
vice president of support services, said CoxHealth would not respond to the
filings but said a legal response would be filed the next day.
On Tuesday, however, Cunningham said that lawyers had decided not to file
that response.
“After considerable
review of the pleadings, our legal counsel determined that our efforts to
correct the government’s misrepresentations would not be central to the issue
before the court, which is whether or not a stay should be issued in the
Cochran-Morris civil case,” said Cunningham in an e-mail message.
“We may very well take steps to rebut the government’s claims in some
type of communication to our employees, medical staff and volunteers at some
point in the future. With all due respect to the public’s interests here, we
simply don’t intend to try our case in the press.”
Federal prosecutors
believe CoxHealth will eventually cooperate more fully, according to their
pleadings in the civil case. They
think CoxHealth will disclose the results of its internal investigations
because, if it doesn’t, that would break the agreement with prosecutors, and
allow the government to charge CoxHealth as a company if investigators believe
laws were broken.