Sunday, May 15, 2005

Guilty Pleas in Another Hospital Construction Fraud Scandal

This seems to be a minor epidemic. The Pittsburgh Post-Gazette has reported (here, here, and here) on another scheme involving kickbacks, bribes, and padded construction bills at Mercy and UPMC Shadyside Hospitals. So far, two former managers at Mercy and one at UPMC Shadyside have pleaded guilty.
These may not be particularly spectacular crimes, but they surely must help to drive up costs of health care, diverting money from the actual provision of care to the pockets of the criminals. The extent that each of these cases has a penumbra of demoralization, and hence leads to more costs, and perhaps poorer care and more errors, is unknown, and the issue still is ignored by the health care research and policy communities.

No comments: