Vencor targeted in probe

WASHINGTON -- Vencor Inc. is the subject of an investigation by the Inspector General of the U.S. Department of Health and Human Services, according to Deputy Inspector General John Hartwig.

He disclosed the investigation in a letter to U.S. Rep. Fortney "Pete" Stark. The letter was in response to an inquiry by the California Democrat into whether the agency was taking action against the Louisville, Ky.-based long-term care company for removing Medicaid patients from one of its nursing homes in Tampa, Fla.

The letter says that matter will be referred by the Inspector General's office to the U.S. Health Care Financing Administration, which oversees the government Medicaid health insurance program for the poor and Medicare for the elderly.

The letter goes on to say that "currently, Vencor is the subject of an investigation being conducted by our Atlanta field office," Hartwig wrote. The letter didn't disclose what the investigation is about and a spokeswoman for the Inspector General's office had no further comment on Wednesday.

The Inspector General's investigation is separate from HCFA's inquiry into the Florida incident, which is now complete, said Chris Peacock, a spokesman for HCFA.

The company has not been contacted by the Inspector General and "we're not aware we're the subject of an investigation being conducted out of the Atlanta Inspector General's office," said Vencor spokeswoman Susan Moss.

An investigation by the Inspector General's office could add to Vencor's recent woes. A report in the Wall Street Journal earlier this year said that Vencor was removing Medicaid patients from some nursing homes to make room for more profitable patients.

Vencor operates two facilities in Las Vegas, Vencor Hospital Torrey Pines and THC-Las Vegas, acquired last year when Vencor bought out Transitional Health Corp.

Representatives of the Nevada Attorney General's Office were not available to comment this morning on whether their office was looking into Vencor here.

Lisa Jones, a health facility surveyor with the health division of the state's Bureau of Licensing and Certification, said she knew of no investigations or complaints pending against Vencor in Nevada.

In April, Florida Attorney General Bob Butterworth began investigating a Vencor nursing home in Tampa, Fla., after about 50 residents on Medicaid were asked to leave.

That was followed by an announcement by the U.S. Health Care Financing Administration that the nursing home faced possible removal from the Medicaid and Medicare government health insurance programs.

After a review, however, government officials recommended that the facility be allowed to continue to participate in the Medicare and Medicaid programs, but be subject to additional monitoring, Peacock said/.

Vencor has said that it would discontinue the transfer or discharge of Medicaid patients from its nursing centers unless it was medically necessary.

Vencor obtained about 32 percent of its nursing-center revenue from Medicare and 43 percent from Medicaid last year, according to its annual report filed with the U.S. Securities and Exchange Commission.

archive