Originally appeared on the Lee County Bulletin website
"Oh, what a tangled web we weave, when first we practice to deceive." (Sir Walter Scott)
EAMC is no longer in the practice stage of deceit, with the advent of folks like Terry Andrus and Dr. Joel Pittard, deception has advanced to an Art. Under their leadership as Chairmen of the Board, the standard of care (judging by anecdotal evidence and law suits), has become appalling.
The truth about EAMC greed has been hidden from the citizens of Lee County for so long, the offenses so many, that it’s difficult to know where to start. The web is tangled, but ample evidence is readily available for the honest investigative reporter, working for an honest newspaper wanting to document the fraud and inform the people. Eventually, one domino will fall that causes a chain reaction and all the dominoes to fall. Unfortunately, the consequences of fraud and deceit are not limited to EAMC perpetrators. The collateral damage is to the Lee County Taxpayers' financial investment. The collateral damage is to Taxpayers whose lives depend on hospital care. Profit and greed are the highest priorities for EAHCA/EAMC management, not the care of those suffering. One better have a private doctor to protect him if he enters EAMC, otherwise "Abandon all Hope, ye who enter here".
EAMC is well practiced at the Art of deception because it has great power as the second largest employer in Lee County. With Taxpayer money from the Special Hospital Tax and EAMC ability to kite Bonds, it can afford a well-financed Public Relations Dept. that controls the narrative well enough to cover up its fraud. The Press dare not print the truth. As a result, the citizen/patient remains unaware that this EAMC parasite is sucking his blood, his treasure.
Regarding the $6.6 M settlement for Medicare/Medicaid fraud, Sam Price is among the men who signed illegal contracts resulting in the suit. He was the CFO of EAMC and Aperion at the time of the law suit. He’s still the CFO. He is so experienced at "securing" money that EAMC cannot afford to punish him. Besides, the taxpayer is the one that actually paid the settlement, not EAMC. The taxpayer’s Special Hospital Tax is still paying the price for the $31 M 2018 bonds. After Price's "beg for money" show at the last County Commission meeting, don't be surprised if EAHCA/EAMC attempts to kite a new Bond issue. Just say "no" to your Commissioner.
EAMC officers were not held accountable when they allowed CFO Sam Price to commit fraud without punishment. He was neither demoted, nor fired; he actually received raises! The Chairman and the Board of EAHCA did not punish Sam Price. Andrus, Pittard and Grill are still there and are still being rewarded. Why is there no oversight from either the Board of EAHCA or the President (now Grill) and V.P. ( then Ken Lott, ha! ) of EAMC or Probate Judge Bill English and the Lee County Commission? Why didn't the County DA investigate these elites? Fraud or not, since there is no public knowledge of the crimes, there is no incentive to punish anyone generating so much money.
Fite v. Aperian Laboratory Solutions LLC, 5:13-cv-01626 , is the website. Court records cite the fraudulent contracts that Aperian, a totally owned subsidiary of EAMC, signed.
Paragraph 91 of the Amended Complaint. “Aperian had another such employee lease agreement with FLH, Inc., a pain management services provider in Northport, Alabama. The agreement provided that Aperian would pay FLH, Inc. to lease a full time employee at the rate of $16 per hour for 2080 hours per year to provide collection services. The contract acknowledges the Stark and Anti-Kickback Statute. Yet, the employee lease agreement was entered into by Aperian as an inducement for laboratory drug testing referrals from FLH, Inc. The contract is dated May 19, 2011 and signed by [V. Pres.] Ken Lott and Sam Price for Aperian. All claims submitted to Federal payors for referrals of drug testing from FLH, Inc. to Aperian are false claims for payment because they are submitted in violation of the certification of Stark and Anti-Kickback compliance on the CMS Form 1500. The CMS form is what doctors and other health providers use to bill Medicare/Medicaid or insurance companies."
Paragraph 52 of Amended Complaint. "The $35,000 flat fee was not satisfactory to Jannie Chapman and TDS/Compass so negotiations between Aperian/EAHCA and Compass/TDS began again in the end of summer/fall of 2012. There were proposals for various versions of the contract. However, the parties eventually signed a new 25% commission agreement that governed the relationship from December 1, 2012 to the present. That contract is signed by Jannie Chapman as V.P. of Compass Laboratory Services, LLC and Samuel A. Price, Jr. as CFO of Aperian Laboratory Solutions, LLC.
The Anti-Kickback Statute prohibits any person or entity from making or accepting payment to induce or reward any person for referring, recommending or arranging for federally-funded medical services, including services provided under the Medicare, Medicaid and (as of January 1, 1997) TRICARE programs. In pertinent part, the statute states: (b) Illegal remuneration (1) whoever knowingly and willfully solicits or receives any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind -- (A) in return for referring an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a Federal health care program, or (B) in return for purchasing, leasing, ordering, or arranging for or recommending purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under a Federal health care program, shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both. (2) whoever knowingly and willfully offers or pays any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind to any person to induce such person -- (A) to refer an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under a Federal health care program, or (B) to purchase, lease, order or arrange for or recommend purchasing, leasing or ordering any good, facility, service, or item for which payment may be made in whole or in part under a Federal health care program, shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both. 42 U.S.C. § 1320a-7b(b).
Violation of the statute can also subject the perpetrator [EAMC] to exclusion from participation in federal health care programs and, effective August 6, 1997, civil monetary penalties of $50,000 per violation and three times the amount of remuneration paid. 42 U.S.C. § 1320a-7(b)(7); 42 U.S.C. § 1320a7a(a)(7)."
In other words EAMC jeopardized Lee County citizens’ ability to access medicare/Medicaid benefits at EAMC, the hospital Taxpayers subsidize.
Has anyone read about that in the newspaper or seen it on TV? No, because EAHCA/EAMC controls the media. The few articles about the $6.6 M fraud were formatted to allow EAMC to have the last word in the article to claim that EAMC was not guilty, it just settled because of the prohibitive cost of litigation to defend the charge. Don't believe the lie, believe the documents.
CFO Sam Price and V.P. Ken Lott signed contracts and committed fraud, but what penalty did they pay? The only penalty was paid by the Taxpayer. Shame on EAMC management.
Reasons why Fraud is so rampant at EAMC
A) There is no oversight from the Board. This lawlessness, hubris and Greed is partially due to the fact that since 2015 the Board "elects" itself (thank Andrus) and partly due to abuse of the following sections of the Code of Alabama:
1) Section 22-21-334: non-applicability of the Ethics act to “Authorities” such as EAHCA/EAMC.
2) Sec. 22-21-335: non-applicability of Bid Laws to “Authorities”.
3) Sec. 22-21-328: non-applicability of Usury and Interest laws.
4) Sec. 22-21-358(7): Authorities (such as EAHCA/EAMC) can indemnify its employees. The hospital can pay to defend corrupt employees, can reimburse them for consequential loss.
5) Sec. 22-21-351: an “enabling act” further granting Authorities extraordinary powers that EAHCA/EAMC repeatedly abuses.
B) There is no oversight from the County Commission. Chairman Bill English deceitfully maintains that he has no oversight. We’ll develop this issue in later posts.
It's time the Chairman of the Board answers for hospital's fraud and abuse occurring during his tenure. It's time for the County Commission to exercise its oversight role if the Chairman of the Board will not. No need to tell you who ultimately bears the financial cost of this indemnification of malfeasance at East Alabama Health Care Authority. The culture at EAMC is one of abuse and greed. Wonder why EAMC is having labor issues now? Management treats its nurses and employees the same way it treats its patients and the taxpayers of Lee County. Don't suck so much blood that it kills the host, leave enough blood for the host to survive until EAMC needs the next fix.
If those, whose job it is to oversee the hospital and protect the patient, will not do their job, it becomes the Taxpayers' job to stop the Greed, to hold malefactors accountable for malfeasance, fraud and greed. If one does not acknowledge what he sees, he is complicit with the criminal perpetrator, having given tacit consent. I prefer not to.
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