"Disproportionate Share": Payback's a -itch

This just in: The News & Record, Charlotte Observer and Raleigh News & Observer are all reporting that there has been major development in the "disproportionate share" fiasco . . . first brought to light by former State Auditor, Ralph Campbell in 2004.

The FBI, US Department of Health and Human Services and all three US attorneys in North Carolina issued a statement today announcing a "deal" made with the NC Department of Health and Human Services. The State of North Carolina must repay the Federal Government 151.5 million dollars in Medicaid overpayments (made to NC hospitals that dipped too deeply into the cookie jar on the pretense of being compensated for indigent care).

"North Carolina will have four years to repay the money, which includes a total of $91 million that will be paid by 51 hospitals for their share of the overpayments."

"The state must repay the bulk of the money, $106 million, by Sept. 30, according to the settlement. The remaining $45 million will be paid in equal installments over the next three years."

It's actually a WAY sweet deal for the state, as some estimates put the Medicaid overpayments at a half-billion (some insisted the figure was closer to one billion) dollars.

According to the Charlotte Observer's story (off the AP wire):

"Carmen Hooker Odom, who heads the state Department of Health and Human Services, acknowledged Friday that a third party that administered the program on the state's behalf used incorrect calculations when determining the reimbursement amounts. The overpayments accrued from October 1996 through September 2002.

Investigators blamed the mistake on several "significant" accounting errors and the failure of the state to settle its books yearly, according to a joint statement from U.S. Attorneys George Holding, Anna Mills Wagoner and Gretchen Shappert."

The "third party" that administered the program on the state's behalf is the Carolinas Medical Center (CMC) in Charlotte - a beneficiary of a good portion of the overpayments.

As one might expect, not one of the people who made the "significant accounting errors" will be actually charged with a crime. The US Attorney's Office says there was no fraud.

And Ms. Hooker-Odom (with significant ties to CMC) still has her job.

"Since the audit was issued, the state has fixed the calculcation error and now requires that the program's books be balanced yearly so that any discrepancies don't carry over, Hooker Odom said."

Ralph Campbell, the state Auditor who brought all of this all to light, lost his job in the last election. Have no fear, the Democratic political machine is alive and well in Raleigh - and woe be unto anyone who does or says anything that might reflect negatively on the Easley administration.

Make no "mistake", the taxpayer paid for this party. And in this day of "ethics", no one is being held accountable for their bad "accounting" or bad judgment.

Congressman Howard Coble and Former Governor, Jim Martin (now a CMC Vice President) lobbied the Feds hard for a settlement.

It will be interesting to see if this story (released on Friday) quickly gets buried . . . or if anyone in the state's collective press corps has the cahoones to put this "deal" under closer scrutiny . . . in terms of holding state & CMC officials accountable for their very expensive "mistakes".

It would be nice if a journalist actually stepped up to the plate.