When the federal investigation of Rick Scott’s former hospital company became public in 1997, the board of Columbia/HCA forced him out. Scott left with $300 million in stock, a $5.1 million severance and a $950,000-per-year consulting contract for five years.
What does Scott call that? Taking responsibility.
The governor’s new Senate campaign ad again seeks to rewrite the history of Columbia/HCA, which Scott founded in 1987 and led as CEO. Indeed, the ad is titled “responsibility” and compares Scott’s actions to those of “strong leaders.”
In its settlement with the government, the company admitted to 14 felonies related to fraudulent billing and practices. Most happened under Scott’s leadership.
Columbia/HCA gave kickbacks to doctors so they would refer patients. Columbia/HCA made patients look sicker than they were, so Medicare would pay more. Columbia/HCA kept two sets of books.
The settlement required Columbia/HCA to pay $1.7 billion in fines, then the largest health care fraud case in the country. Scott departed a year after Time magazine named him one of America’s 25 most influential people for “transforming how American hospitals do business” through a company that “consolidates operations and imposes cost controls.”
Apparently, however, Scott’s business model depended on cheating. Despite that record, Scott narrowly won two terms as governor. With Scott in a tight race against Bill Nelson, the issue has arisen again. The new ad tries to make the governor the responsible guy on Medicare, not Nelson.
The ad continues Scott’s effort to portray Nelson – who is 76 – as old and dotty. Nelson, the ad said, is “confused” in his criticism of Scott and Columbia/HCA.
The company, the ad says, “paid every penny.” Well, sure. The settlement required payment, which came long after Scott was gone. The ad says Scott “took responsibility” without specifying how he did so.
That’s because Scott never did. He blamed the investigation on the Clinton administration, which supposedly sought revenge after Scott opposed health care reform. He claimed that Columbia/HCA was no worse than other companies. He noted that the government didn’t charge him with a crime.
And, of course, Scott claimed not to have known anything. He was a genius who deserved his megabucks severance, but he had no idea about company operations.
During his first campaign, Scott wrote: “I learned very hard lessons from what happened and those lessons have helped me become a better businessman and leader.”
Or not.
After moving to Florida, Scott started Solantic, a chain of walk-in clinics that also faced lawsuits. Just before Scott announced for governor, Solantic settled one of those lawsuits. The confidentiality agreement kept secret a deposition by Scott that he has refused to release. In a deposition related to Columbia/HCA, Scott took so much responsibility that he invoked the Fifth Amendment 75 times.
Seeking to shift attention from Scott’s business record, the new ad accuses Nelson of cutting $716 billion from Medicare and using it for “more government spending.” The charge is as phony as the idea that Scott owned up to the fraud at his company.
The Affordable Care Act sought to cut wasteful Medicare spending. One target was Medicare Advantage plans, which got a boost in 2003 from the Republicans’ Medicare drug plan.
Ample evidence showed that Medicare Advantage plans cost more than traditional Medicare and weren’t as efficient. So the Affordable Care Act, which Nelson supported, shifted that $716 billion – now closer to $800 billion – away from private insurers.
Though the Scott ad accuses doddering ol’ Bill of being “too weak” to “stand up” for Florida’s seniors, the shift bolstered Medicare. Republicans have used similar ads in other states. Credible fact-checking services have debunked them.
His habit of ducking responsibility in business foretold how Scott would behave as governor. He is the most secretive governor in at least half a century. He keeps his schedule private as long as possible. He can do that because he owns the jet on which he travels.
Scott has had to duck the public a lot during this campaign. He blew off algae protesters in Martin County. He did the same thing in the Panhandle to Floridians angry that he had signed a bill restricting public beach access.
The governor built his political career with a fortune based on fraud. Perhaps people are starting to hold him responsible.
