Here’s what the FBI had to say about a Rauner-linked company

By DOUG IBENDAHL • March 14, 2014


In February of 2011 the Federal Bureau of Investigation, Atlanta Division, in conjunction with the U.S. Attorney’s Office, Northern District of Georgia, published a press release announcing a $13 million civil settlement with a company doing business as “APS Healthcare Midwest.” The settlement resolved allegations under the False Claims Act.


From the FBI’s website:


The government alleges that APS Healthcare submitted false claims to Medicaid through the Georgia Department of Community Health (DCH) because it did not provide specialty services related to disease management and case management to members of the Georgia Medicaid Management Program (GAMMP) during the period from September 1, 2007 through February 28, 2010.


United States Attorney Sally Quillian Yates said of the settlement, “In this time of tight budgets and rising health care costs, the state of Georgia tried to improve its services to its Medicaid recipients by contracting with APS Healthcare. But instead of providing improved efficiency and effectiveness the company billed for, APS Healthcare took Medicaid’s money for itself and left some of our most vulnerable citizens without the aid they deserved.”


At the time of the federal settlement, APS Healthcare was owned by GTCR through its affiliated funds. GTCR initially invested in APS Healthcare in June of 2007.


GTCR sold APS Healthcare to Universal American Corp. in March 2012. As we also reported today, that sale is the focus of a lawsuit currently in U.S. District Court in Delaware filed by Universal American Corp. against the seller GTCR and others.


Bruce Rauner retired as Chairman of GTCR in October 2012 in advance of his run for governor.


The same press release also contained a stern warning from the Georgia Senior Assistant Attorney General:


“This substantial recovery of taxpayer dollars is attributable to the continued strong partnership between state and federal law enforcement agencies in the fight against health care fraud and abuse,” said Scott Smeal, Georgia Senior Assistant Attorney General. “This case should send a strong message to companies such as APS Healthcare that they will be held fully accountable when they fail to provide the services they promised to provide to Medicaid patients.”


Allegations of Medicaid/Medicare abuse have also been leveled in U.S. District Court against GTCR-linked Trans Healthcare, Inc. and Trans Health Management, Inc. in a civil suit currently pending in Florida.


Just to recap for those scoring at home – this one short article references serious GTCR-linked problems either settled or currently being litigated in three separate states.


Doug Ibendahl is a Chicago Attorney and a former General Counsel of the Illinois Republican Party.


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