NBC Evening News for Monday, Feb 16, 1976
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(Studio) Senate committee told of $45 million paid to labs doing Medicaid work. 13 Illinois labs accused of charging $7 million for work not worth more than 1/2 than ant.
REPORTER: John Chancellor
(DC) Med. investigators say 13 Illinois labs controlled 65% of Medicaid business They offered doctors kickbacks if lab contracted to run tests on Medicaid patients. [Investigator, Senate committee on aging, William RECKTENWALD - tells of instance of fraud.] [Investigator, Chicago better government association, Doug. LONGHINI - says sales representative told him to promote his new lab in black neighborhoods where money was.] Committee turns over findings to Justice Department and IRS. Illinois representatives close down 4 clinics and cut off 5 doctors from Medicaid payments. Investigators say Illinois acted only when aware that Senate committee was releasing its report
REPORTER: Carole Simpson
(Chicago, Illinois) 2 labs closed; owner of 1 lab left country Lab believed to be largest Medicaid operation in state, still open. [Division Lab. owner, South Willard FOOTLIK - says not aware of investigation. Not aware of any charges.] Hospital labs say they can't compete with low prices offered by fraudulent storefront operators. [Illinois Masonic Hospital Dr. Thomas AINSWORTH - can't compete with kickbacks. Could reduce rates but can't afford kickbacks.] Says Illinois owes his hospital $3 million for 1975 lab work.
REPORTER: Rebecca Bell