In Shift, Feds Target Top Execs For Health Fraud

[kpete]

Source: Huffington Post

WASHINGTON -- It's getting personal now. In a shift still evolving, federal enforcers are targeting individual executives in health care fraud cases that used to be aimed at impersonal corporations.

The new tactic is raising the anxiety level – and risks – for corporate honchos at drug companies, medical device manufacturers, nursing home chains and other major health care enterprises that deal with Medicare and Medicaid.

Previously, if a company got caught, its lawyers in many cases would be able to negotiate a financial settlement. The company would write the government a check for a number followed by lots of zeroes and promise not to break the rules again. Often the cost would just get passed on to customers.

Now, on top of fines paid by a company, senior executives can face criminal charges even if they weren't involved in the scheme but could have stopped it had they known. Furthermore, they can also be banned from doing business with government health programs, a career-ending consequence.

Read more: http://www.huffingtonpost.com/2011/05/31/feds-target-execs-health-fraud_n_868924.html

[LetTimmySmoke]

1. K&R!!!

It's finally time someone enforced the law against big corporations.

[aquart]

2. HELLO! You just woke me right up.

What an EXCELLENT idea! Destroys corporate personhood, doesn't it?

And how soon will it be applied to Goldman Sachs?

[alfredo]

3. It's about fucking time!

[toddwv]

6. +1

For too long the corporate mantle has been nothing more than a way for top execs to reap HUGE benefits with virtually no risk.

[alfredo]

7. Even kings lose their heads from time to time.

[Scuba]

14. + Another

[Manifestor_of_Light]

4. Bill Frist? Rick Scott??

[Hotler]

8. +1 n/t

[bemildred]

5. Authority and responsibility (or in this case culpability) go together. nt

[Auntie Bush]

10. Aye, Aye

[dmosh42]

9. Did anyone tell our useless AG? Holder will stop this! n/t

[0rganism]

11. Not getting my hopes up on this one...

This isn't going to happen. Not in today's America.

Our government is bought and paid for by the rich and powerful. It's not just going to start prosecuting them all of a sudden. Even if the AG cracked down on fraudulent CEOs and got a conviction or two, they could just appeal all the way up to the Roberts court for protection. (And knowing the SCOTUS, they'd find a way to force a 5-4 decision to criminalize the thinking of unpleasant thoughts about our benevolent corporate overlords.)

[JAnthony]

12. They want to get the criminals out of the health industry? That's...

about 90% of the execs that will have to be banned!!!

They are not stupid people, they know what kind of scams they are pulling on the public.

[Javaman]

13. What kind of shift? actual investigation or public perception?

I'm sooooooooooooooooooooo holding my breath over this one.

[No Elephants]

15. OP article says a 1970's SCOTUS case confirmed government's power to charge corporate officers

criminally for the misdeeds of the corporation. So, this power's been around, qnd confirmed, for decades.


"Lawyers who represent drug companies say the change has definitely caused a stir, but the end result is far from certain."

But, sure, let's cheer before anything actually happens. Why not?