Attorney General Releases 2005 Annual Report And

Attorney General Spitzer today released the 2005 Report to the Secretary of the United States Department of Health and Human Services (DHHS) and the findings of the DHHS Office of the Inspector General's Onsite Review of the State of New York, Medicaid Fraud Control Unit (MFCU).

The Report to the Secretary of DHHS contains MFCU recovery statistics by federal fiscal and calendar years, including recoveries from joint federal multi-state efforts, and highlights the office's role in significant cases.

During Federal Fiscal Year 2005 MFCU:

  • Recovered $219 million in ordered judgments and negotiated settlements, more than two and one-half times its own national record established in 2004;
  • Reported 245 successful cases, 122 convictions and 123 successful civil enforcement actions; and
  • Secured a $76.5 million fraud recovery, New York's largest single Medicaid recovery.
  • During Calendar Year 2005 MFCU:
  • Led a team of state units and worked with the federal government to secure the largest national multi-state Medicaid settlement in history - $171 million of the $567 million civil settlement with Serono, Inc., was secured as restitution for losses sustained in New York's Medicaid program;
  • Initiated the use of hidden cameras in nursing home facilities to document the neglect of vulnerable patients.

The Inspector General's Onsite Review indicated that:

  • Following its two-week, onsite evaluation, the Office of the Inspector General (OIG) found the MFCU to be in general compliance with all rules and regulations and noted that MFCU's recoveries had increased substantially. The OIG also made four recommendations. MFCU should: adopt written policies for undercover operations; obtain OIG approval before loaning equipment to other law enforcement agencies; resume annual training sessions for lawyers and administrative staff; and hire more medical personnel.

Attorney General Spitzer has continued to urge the passage of a New York False Claims Act to increase financial recoveries, and a Martin Act for Health Care, which would provide additional prosecutorial tools to fight Medicaid Fraud.

Attachments:

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