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Blog of Mass Destruction

Richest Country Can't Afford Rehab For Seniors

By The Reverend Published: November 27, 2007

Dianne Feinstein, Democratic Senator from California, has been a huge disappointment to progressives. The following story needs read in it's entirety to appreciate the stench in it's robust on the's quite a story. Follow the bread crumbs of the following pieces of the story to see why I say that....

In 2002, the administration, with help from the then-GOP led Congress found a rather creative way to rip off the poor and the elderly. A bill was passed ostensibly to curtail unnecessary Medicare spending.

Medicare officials have declared a temporary "pause" in a controversial auditing program that has put a strain on dozens of California rehabilitation hospitals forced to surrender tens of millions of dollars on allegations that the care they provided elderly patients was medically unnecessary. ...

The pause was prompted by the program's....

...rejection of almost all Medicare claims involving elderly patients treated at rehabilitation hospitals after knee or hip replacement.

The program also has a very interesting way of paying it's auditors. Auditors who work for the California contractor, PRG-Schultz International of Atlanta, GA.....

The audit program was established as a test by Congress in 2002 in an effort to reduce unnecessary Medicare spending. It took effect in 2005 in three states -- California, New York and Florida, all high-cost Medicare states. But rather than being paid a fee for their work, auditors are paid commissions of between 25 percent and 30 percent of the money they collect from rejecting claims as far back as five years. Link

This "creative" way of

reducing the number of seniors who will ever walk again, while at the same time enriching yourself making Medicare more efficient will be coming to a state near you...

The commission-based program has been operating for more than two years on an experimental basis in the three states and is set to expand permanently to 20 more in March.

And here comes the Feinstein punchline....

.... the private contractor doing the audit in California is PRG-Schultz. Among the investors in PRG-Schultz is Blum Capital Partners, headed by Richard Blum of San Francisco. Blum is married to Sen. Dianne Feinstein, D-Calif. Link

Now isn't that a fun story illustrating why America, the richest nation on earth, is so .....exceptional?

Doesn't this fun story speak volumes about why it's so much better for Americans to be served by private interests? Private interests, especially private interests with access to high profile politicians, just, I don't know.....they just know how to do stuff much more efficiently than, say, government auditors who don't have special access to high profile politicians.

Think if we just give the auditors a third of the action, they'll refuse the hip and knee replacement approvals altogether?

Think of the savings.



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