March 14,2002

Grassley Asks for Cooperation in Health Fraud Case

WASHINGTON – Sen. Chuck Grassley, ranking member of the Committee on Finance,today sent the following letter.

March 14, 2002
Mr. Thomas Scully
Centers for Medicare & Medicaid Services
200 Independence Ave. SW
Washington, D.C. 20201

Dear Mr. Scully:

I was pleased you appeared at this morning's hearing before the Senate Finance Committee.I am writing now to seek a fuller explanation of statements you made regarding the pending FalseClaims Act case against HCA Inc. (formerly Columbia HCA). As I mentioned in my comments thismorning, I asked my question because of concerns I had heard from the Department of Justice thatthey were not receiving full cooperation from Centers for Medicare & Medicaid Services (CMS)regarding the HCA case.

I understood you to say that there are significant legal differences between CMS and theDepartment of Justice regarding the liability of HCA under the False Claims Act. It is my concernthat if that is the case these disagreements may hinder CMS' full cooperation with the JusticeDepartment in attempting to resolve the remaining liability.

Please explain in detail each of these legal differences as you see them. In addition, havethese legal differences affected your ability to cooperate with the Justice Department and/or thewhistleblowers who initiated the HCA case? Specifically, are CMS staff fully cooperating withJustice in those areas where CMS disagrees with Justice's legal position? Please provide details asto any information, data or personnel (to include any requests for meetings) sought by the JusticeDepartment or the whistleblowers which you have not fully provided or agreed to by CMS. Also,please list all meetings CMS has had with HCA on this matter.

This issue is extremely important to me, and I would appreciate a response within 10 days.Finally, as well as your response on HCA please inform me of any other False Claims cases whereyou have significant differences of opinion regarding liability with the Department of Justice. Pleaseprovide that information within 30 days. Thank you for your time and cooperation on this matter.If you have any questions, please contact Mr. Dean Zerbe of my staff at 224-5315.

Cordially yours,

Charles E. Grassley
Ranking Member

cc: Robert McCallum
Assistant Attorney General, Civil Division