-Caveat Lector-

Masonic facility to repay Medicaid
By KEN DIXON

Aug. 17 - HARTFORD --

One of the state's largest health providers improperly billed the state for
$12 million over nine years in Connecticut's largest case of Medicaid
negligence, Attorney General Richard Blumenthal charged Thursday.
But the president and CEO of the company, Masonicare of Wallingford, said
fraud was not an issue and there were no allegations of substandard care in
its 548-bed geriatric, acute-care and psychiatric complex.  Masonicare is an
affiliate of the Ancient Free & Accepted Masons of Connecticut.

Blumenthal, however, said there was evidence of widespread malfeasance and
has referred the case to state and federal authorities for possible criminal
charges.

"In this Medicaid abuse case, they literally threw everything, including the
kitchen sink, into their wrongful claim report, when they asked for
reimbursement of apartment renovations," Blumenthal said during a morning
news conference.  "It certainly was abusive, improper and probably
fraudulent in many respects."

The nonprofit Masonic Geriatric Healthcare Center of Wallingford improperly
claimed about $12 million in state Medicaid funds administered by the state
Department of Social Services.

About $3 million in property improvements and renovations should never have
been part of the reimbursement requests, according to Blumenthal and the DSS


>From July 1992 through June of this year, DSS made about $11 million in
payments that were either prohibited by Medicaid or should have been
reimbursed under other programs.

Deputy DSS Commissioner Michael Starkowski said, "It remains among our
highest priorities to ensure the integrity of state-funded health-care
payments to facilities charged with caring for our most vulnerable
populations.  Today's settlement, which represents almost $12 million in
restitution for wrongly expended state funds, not only acknowledges that we
will catch abusive and negligent practices, but it's worth the effort."

Under the settlement, MGHC will return the $10,886,000 in Medicaid
overpayments and pay an additional $1,014,000 for costs associated with the
inquiry conducted by the Attorney General's Office and DSS.

The Wallingford complex also will have to establish a corporate integrity
program in cooperation with the state's Medical Assistance Program.

In a statement issued Thursday, Barry M. Spero, Masonicare's president and
CEO, said the company "has taken steps to ensure all future cost reporting
meets complex state regulations."

He admitted that the firm "takes full responsibility for any errors that may
have been made."

Spero indicated that with the company's "rapid expansion" into a variety of
services, from cemeteries to psychiatric care, staff administrators may have
been overwhelmed.

"We know through our own internal review and the state's audit that although
Masonicare's delivery of care was of the highest standards, our business and
information systems were not able to keep pace," Spero said.

The company has hired a new financial staff, purchased a new computer system
and hired consultants to oversee future integrity, he said.

Blumenthal said that, over the last four years, state Medicaid fraud
investigators have succeeded in retrieving about $33 million in payments
from a variety of state contractors.

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