May 08,2003

Grassley Seeks Taxpayer Fairness in Health Fraud Case


To: Reporters and Editors
Re: HCA settlement
Da: Thursday, May 8, 2003

The Justice Department has finalized its role in the government’s pending False Claims Act
litigation against HCA and an agreement between the Department of Health and Human Services and HCA to resolve administrative issues regarding HCA hospitals’ cost reporting to Medicare. Sen.
Chuck Grassley, chairman of the Committee on Finance, repeatedly has asked to see the details of
how this case was resolved but hasn’t received those details. Grassley made the following comment
on Justice Department approval of the settlement, which is subject to approval by a federal judge.

“The Justice Department believes this is a justifiable settlement. Ultimately America’s
taxpayers will have the final say. The verdict is still out on whether this is fair and reasonable. The
court has yet to review its reasonableness. My committee investigators will continue investigating
whether this settlement adequately compensates Medicare for its losses. The Justice Department and the Health and Human Services Department have yet to respond to the whistleblower allegations I brought to their attention. The allegations hold that this settlement is significantly inadequate. Time will tell if they’re right or wrong. I have yet to see the math behind this settlement, so I can’t judge for myself. I’ll keep on top of this issue until this behind-closed-doors deal sees the light of day and taxpayers learn whether fraud pays.”