Aides to Janet Rehnquist, inspector general of the Department of Health and Human Services, said today that she had responded to political pressure by ordering a quick settlement of federal charges against a Pennsylvania hospital accused of filing false claims with Medicare.
As a result, they said, the government recovered several hundred thousand dollars less than it would otherwise have obtained....
Originally, in June 2001, the government asserted that York Hospital, in York, Pa., owed $726,938 for 2,643 false claims. That sum included a civil fine of $134,000.
Ms. Rehnquist, the daughter of Chief Justice William H. Rehnquist, took office on Aug. 8, 2001. On Sept. 6, 2001, three Republican members of Congress sent a letter to Tommy G. Thompson, the secretary of health and human services, asserting that the charges against York Hospital were "unwarranted and unfair." On Nov. 26, 2001, the government settled the case for $270,000....
D. McCarty Thornton, who was chief counsel to Ms. Rehnquist at the time, would not describe his conversations with her, citing attorney-client privilege.
But a senior member of the inspector general's staff, who has worked in the office for more than two decades, said Ms. Rehnquist had told Mr. Thornton: "I hate this case. Get rid of it as quickly as possible."...
"If the inspector general advocated a lower settlement amount of a hospital fraud case because of political pressure, that would be unacceptable," [Senator Charles] Grassley said. "Inspectors general offer important checks and balances on federal agencies. They have to be isolated from politics to function effectively."...
The letter to Ms. Rehnquist about York Hospital was signed by Pennsylvania's senators, Arlen Specter and Rick Santorum, and Representative Todd R. Platts, who is from York.
It's subpoena time.
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