More Sunrise records seized

Art Nadler

Friday, May 1, 1998 | 9:56 a.m.

The second day of records seizure at Sunrise Hospital and Medical Center netted nearly 200 boxes of documents, the Las Vegas office of the state attorney general said Thursday.

FBI agents and investigators with the attorney general's Medicaid Fraud Control Unit began seizing financial records from the hospital Wednesday morning. The quantity of records removed required the use of a rented truck.

State officials are not yet explaining their actions, other than to say they are investigating "possible fraud."

The state of Nevada paid Sunrise Hospital $23.8 million for treating Medicaid patients last year.

The records seizures are likely related to an investigation undertaken a year ago after federal and state investigators interviewed Marc Gardner, a former Sunrise Hospital executive.

Gardner refused to talk with the local media, but told the Wall Street Journal in an article published May 30, 1997, that, "I committed felonies every day."

The article quoted him as saying that he arranged to have cardiac catheters sterilized and reused, helped fire 15 nursing managers, cut back on registered nurses, and pressured doctors for more patient volume.

Mitch Mitchell, president and chief executive officer at Sunrise, denied Gardner's allegations. He said Sunrise treats all patients appropriately. He also said Gardner was disciplined for being overly aggressive.

Tim Terry, who heads the attorney general's fraud unit, remained reticent Thursday as investigators continued their seizure of records.

"We are completing the collection today," Terry said. "We can't by law say anything more than this."

The attorney general's office would not say whether their search and seizure was backed up by a search warrant, subpoena, or mutual agreement with hospital administrators. Neither would officials confirm that a grand jury has been convened.

Bob Harmon, spokesman for the attorney general's office, declined to comment on information reported to the SUN that a grand jury has indeed been convened to hear evidence about insurance fraud and Medicaid billing practices.

Sunrise Hospital is owned by Columbia/HCA Health Corp., a hospital chain based in Nashville, Tenn. Nine other Columbia/HCA hospitals around the country are undergoing similar investigations. Altogether, Columbia/HCA operates 318 hospitals nationwide.

Controversial computer programs may have something to do with the probe.

Christopher Thompson, chief health care and financial analyst with the state Department of Human Resources, told the SUN last April that Sunrise runs sophisticated computer programs to achieve "revenue maximization."

Medicare pays set rates for treatments based on codes. The higher the code on a particular illness, the more money is paid. The computer program analyzes a patient's illness and seeks the highest code, Thompson said.

"Columbia Sunrise is the most sophisticated hospital (in the state)," Thompson said. "It does run on average a higher mix. Sunrise has put more of an effort into revenue maximization."

Sunrise Hospital reported profits of $25.1 million last year, making it the most profitable hospital in Nevada.

SUN REPORTERS Cy Ryan and Bill Gang contributed to this story.