× The Vanderbilt Television News Archive is currently closed to in-person research, but is still fulfilling loan requests. For the latest information about COVID-19 (coronavirus disease), visit vu.edu/coronavirus.
Search the Archive

Medicaid Fraud / Congress / Illinois / Labs #487066

NBC Evening News for Monday, Feb 16, 1976
View other clips in this broadcast →

Material supplied by VTNA may be used for educational analysis or research only. Any editing, reproduction, publication, rebroadcast, public showing or public display may be prohibited by copyright laws. For any such use, please visit NBC NEWS Archives XPRESS.

(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

Bell, Rebecca;
Chancellor, John;
Simpson, Carole

Note to sponsor members: The Vanderbilt Television News Archive video player requires a modern operating system and browser to work properly. If you are experiencing playback problems, check the minimum requirements and adjust your setup accordingly. After adjustments, if you continue to experience problems, please contact us.

Welcome! Above is the abstract of the item that you're interested in viewing from the Vanderbilt Television News Archive's collection. You have three options if you'd like to view this item:

  • You may request a loan of this video by registering on our website and placing an order.
  • You may visit the Television News Archive on the Vanderbilt campus to view on-site from the Archive's collection.
  • If you are associated with a college or university, you may ask your library if they would like to become a sponsor, which would give students and faculty at your institution the ability to view items from our collection.

If you believe that you are associated with a sponsoring college or university and have received this message in error, please let us know.