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HOSPITAL INDUSTRY FACING MASSIVE MEDICAID LIABILITY (PR-LEAP / SEATTLE) – Press Release – July 1, 2005

HHS & CMS, the Division of HHS that regulates Medicaid in the United States, & The Office of Inspector General (OIG) [Policy & Management] recently admitted to TMA International Trusts (TMAIT) that Hospitals must provide Privacy Act Disclosure when collecting Social Security Numbers (SSNs). TMAIT, in its capacity as “Relator” or “Private Attorney General” discovered Hospitals in all 50 States and D.C. have not been complying with PART 482’s mandatory disclosure requirement [CoP] necessary for Hospitals to be eligible for Medicare & Medicaid. The disclosure requirement was made mandatory by CMS in 1999 after HHS, HCFA & OCR [Office of Civil Rights] signed a Multi-Agency Policy Letter adopting the Policy as part of Patient Rights in Part 482 CFR, published in the Federal Register, made mandatory by CMS on Hospitals. HHS,CMS & OCR had “NO Knowledge” about Hospitals not providing the required disclosure.

TMAIT investigated the Medicaid Programs in all 50 States and the District of Columbia discovering massive criminal fraud, intentional violations of citizens’ federally protected rights, millions of federal felonies, corruption inside HHS, and corruption inside some States all the way to the Governor. TMAIT has put Hospitals Nationwide on notice that they will be named in upcoming Qui Tam / RICO litigation being filed in Washington D.C. TMAIT is the “Private Attorney General” or “Relator” in all the States in question under the “Federal False Claims Act” (FCA) - Title 31 U.S.C., Sections 3729-33, by being the “Original Source of Information” and TMAIT is the only “private party” that has the legal authority to file “Qui Tam” lawsuits to recover the Hundreds of Billions of Dollars extorted from the federal taxpayers by unscrupulous Hospitals who have been trampling the privacy rights of its Patients. Between Hospitals, the 38 States, and D.C., who TMAIT found defrauding Medicaid, approximately a Trillion Dollars $$$$$ of federal taxpayer money has been illegally obtained by the Defendants over the last 30 years. This money can be recovered and it carries statutory treble damages.

TMAIT put HHS on “Official Notice” back in December of 2004 but after six months the bulk of the States in question are still committing federal felonies, as are the Bulk of the Hospitals. HHS & CMS finally broke down as to the Hospitals’ mandatory disclosure obligation under the Privacy Act, and admitted that the 1999 CMS Policy is still binding and will remain binding unless and until such time new Rulemaking takes place, which is not likely based on federal case law. Hospital Corporations have used every method available to dispel their massive legal liability but it will do them no good. They even had industry publications publish false, libelous, defamatory articles about TMAIT and its Vice-Chairman. TMAIT will include in the multiple State “Qui Tam” lawsuits any party who commits an “overt act” in furtherance of the Hospitals’ Conspiracy to violate the Rights of Hospital Patients, or cover-up what has already been done. This applies to defense law firms, Publishers, or anyone who crosses the line.

TMAIT represents that Hospitals have been used as a criminal enterprise to illegally obtain federal funding while trampling “Patient Rights,” committing millions of federal felonies collectively Nationwide. TMAIT demanded that HHS/CMS/OIG use its regulatory authority to stop the fraudulent conduct by the Hospitals but it took 6 months to get HHS/CMS/OIG to admit that TMAIT is right. Now the fraud can be stopped. CMS lawyers have stated that the Hospital CoP regarding Patient Rights and Privacy Disclosure clearly state the disclosure is mandatory. The “Hospital Industry” is about to get a wake-up call. With statutory treble damages under the FCA and RICO, the total cumulative statutory, joint & several liability nationwide under Medicaid exceeds $2.5 Trillion.

TMAIT Public Affairs

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