Saturday, May 21, 2005

Senator Bill Frist's Family Business

Frist's family business, of which he was a very large stockholder, Hospital Corporation of America, was the subject of a decade-long Federal investigation into double-bookkeeping and suspected criminal fraud involving the bilking of Medicare, Medicaid, and Tricare (the federal program covering the military and their families). HCA has paid a total of $1.7 billion in fines, the largest fraud settlement in U.S. history. Shortly after Frist assumed his Senate Majority position, a final fine of $631 million was assessed and the ongoing Justice Department investigation into HCA was dropped. Rick Scott, who had been hired to run the company after Frist's brother's retirement, quickly left the company. Frist's brother, a billionaire, returned to HCA to get the company back on track; in addition, HCA was allowed to continue its Medicare contracts.

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