bhamdave
Threadhead
Reged: 01/11/02
Posts: 949
Loc: U.S.A.
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Former HealthSouth CEO Scrushy Pleads Not Guilty
Judge Sets Bond At $10 Million And Orders Scrushy To Wear Electronic Bracelet
BIRMINGHAM, Ala. -- Former HealthSouth CEO Richard Scrushy pleaded not guilty today to 85 counts. Federal prosecutors allege he was the mastermind of a corporate fraud scheme that allowed him to pocket more than a quarter-billion dollars from rigged books at the rehabilitation services company.
The indictment accuses Scrushy of a range of criminal violations, including false certification of corporate statements -- a charge the FBI says makes Scrushy the nation's first CEO accused under a new federal law.
The government also wants Scrushy to forfeit assets valued at $279 million, including several residences in the state of Alabama and property in Palm Beach, Florida; a 92-foot Tarrab yacht called Chez Soiree, a 38-foot Intrepid Walkaround watercraft and a 42-foot Lightning boat; a 1998 Cessna Caravan 675, together with amphibious floats and other equipment, and a 2001 Cessna Citation 525 aircraft; diamond jewelry; several luxury automobiles, including a 2003 Lamborghini Murcielago, a 2000 Rolls Royce Corniche, and two 2002 Cadillac Escalades; and paintings by Pablo Picasso, Marc Chagall, Pierre-August Renoir, among others.
The 51-year-old Scrushy surrendered to federal marshals today prior to his appearance before U.S. Magistrate Judge T. Michael Putnam. The judge set bond at $10 million and ordered Scrushy to wear an electronic ankle bracelet.
A federal court official in Birmingham, speaking on condition of anonymity, said the grand jury that indicted Scrushy heard evidence last week. Some of the witnesses included the 14 former HealthSouth executives who have pleaded guilty.
HealthSouth and Scrushy have also been charged with fraud in a civil lawsuit by the Securities and Exchange Commission.
I've met Richard Scrushy twice, once at an art show and once at a Healthsouth christmas party.
"Arrogance meet Mr Humble"
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AIDS
It's not YOUR problem (I hope that)
It's not MY problem (I know that)
But it is still OUR problem and WE know that!
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IMSUSCOT1
Threadhead
Reged: 10/23/02
Posts: 869
Loc: usa
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If your in the health care business, it's funny to see how closely those "operating on the fringes" have watched the whole Health South house of cards fall....I actually worked (briefly, very briefly) for a company who wanted me to tell them how they could "minimize their exposure" to a possible CMS or OIG investigation...I had gone to them regarding concerns I had when I went to work there and started reviewing records and billing handled by the "independent contractor" (who's office was IN their office, and who worked there, under THEIR direction 8 hours/day)who formerly did their billing, and told them what changes would have to be made in order for ME to do their billing....and they made it quite clear they didn't really want to change the way they were doing things...they just wanted to change the way it appeared ..We parted company shortly thereafter..This sort of thing is so common it makes me ILL...
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54321
Stranger
Reged: 11/18/02
Posts: 23
Loc: ATLANTA
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I have a hunch that once they start to disect his Art Collection they will have more questions for Mr. Scrushy.
His business practices seem to have potentially crossed over into his passion for collecting what we in the Art world refer to as "Trophy" pieces.It is not uncommon for collectors to have pieces of art that is considered "looted".Looted art was stolen by Hitler from the wealthy during WWII and interpol has been tracing them for some time now. These looted or stolen pieces are generally seen as property of the heirs of the estate from which they were looted.Many of the aforementioned "Trophy" pieces are looted.
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zorg
Veteran
Reged: 04/29/02
Posts: 559
Loc: Midwest
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GRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR
This borderline engrages me >:(
All I can think of now is the Kozlowski ice sculptures and Ken Lay's $6000 trash can...... as the employees crash and burn.... in this case , THE PATIENTS.
)EU*)(U()W#*RU)(T*MUNW(P#FM*(WUGW
]
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PAIDFO
Member
Reged: 02/01/03
Posts: 148
Loc: southeast
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I have met "King Richard" a couple of times.He even has or had a neat Lil band.My second surgery was done here at Health South on the southside of town.They charged me $37 for each percoset they gave me.I guess greed will always cause major probs.I hope the hospital survives,it is a fine facility or at least the one here is except for the prices.How about that mayors race BhamDave? Have a Great Day...
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"The difference between Ordinary and Extraordinary is the Little Extra"
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night_shade
Threadhead
Reged: 08/26/03
Posts: 907
Loc: The State of Hockey
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A similar situation here. I was the billing manager for a board and care facility for the semi-functional mentally ill. Almost without exception, the patients were receiving either Medicare or Medical Assistance. Because the government medical programs reimburse at a flat rate, they wanted the charges doctored to "make up" the difference. There were other billing discrepancies, too. Knowing this was illegal as well as immoral, and that the officials would come knocking on my door if things came to a head (the way it was structured was that I got a "bonus" for collecting based on a tier percentage) I quickly moved on. In my own defense, I didn't realize what was going on until I had developed an understanding of the process about 6 months into my tenure there. I left immediately.
Another point, always check over your hospital bills/statements---even if your insurance covers everything. After my c-section some years ago, I was putting things in my daughter's baby book and because she was 8 weeks premature, I had several hospital bills I put in it (to prove she really was a $100,000 baby)...I noticed that MY portion of the bill had dozens of drug charges on it. During my 4 day stay in the hospital, I received 1 morphine injection, morphine spinal anesthesia, 6 injections of demerol, and a percocet and motrin every 3 hours for 3 days. That was it. I was charged for something like 20 demerol injections (almost no hospital will give injectable meds for post-op pain for longer than a day or two, tops), lots of Halcion (as if a nursing mother would take this!), lots of Ativan, Darvocet, even a few Dilaudid injections. I called the hospital billing department and explained that if I had taken ALL of those medications as an inpatient for FOUR days, I wouldn't have even been able to get out of bed! They did reverse the charges and credited my insurance company after an "investigation"...then I learned sometime later (from my insurance company) that an "employee" had been diverting drugs from that hospital in that ward. She probably had gotten away with it for a long time, too. The way they appeared on my bill was in their generic name forms--someone without medication knowledge would probably have assumed it was the name of the meds they received.
Hopefully this was just an isolated incident, but I warn everyone to always ask the nurse what meds they are given, in what strengths and CHECK YOUR BILLS!
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Never underestimate the predictability of stupidity.
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voyager
Old Hand
Reged: 04/17/03
Posts: 413
Loc: United States Virgin Islands
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I hope that "dirtbag" goes to prison for the rest of his life. Additionally, I hope that he is forced to sell all of his holdings to compensate all of the investors and patients that he ripped off.
Then justice will be at least partially served!!
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bhamdave
Threadhead
Reged: 01/11/02
Posts: 949
Loc: U.S.A.
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Richard Scrushy is/was a smart man.
He started one of the best, medical centers in the world.
The one here in Birmingham is one of the best (at least it was when I worked there).
We did surgery's (?) on Celebrities, Famous sports stars, to Saudi Royalty.
But what really po's me is the arrogant lifestyle that he was throwing around..............I'll be happy to take the "Rolls"
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AIDS
It's not YOUR problem (I hope that)
It's not MY problem (I know that)
But it is still OUR problem and WE know that!
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