The Face of Healthcare Fraud in America

Senator Rick Scott was the CEO of Columbia/HCA when the company was investigated for massive Medicare and Medicaid fraud in the 1990s. The company ultimately pleaded guilty to 14 felonies and paid a record-setting $1.7 billion in fines and penalties. Scott was forced to resign in 1997 but was never personally charged with a crime. [1, 2, 3]

Key Facts of the Columbia/HCA Scandal

• The Charges: Federal investigators found that Columbia/HCA systematically defrauded Medicare, Medicaid, and TRICARE. The schemes included filing false reimbursement claims, paying kickbacks to doctors for patient referrals, and billing for unnecessary medical procedures and home health visits. [1, 2, 3, 4]
• The Settlement: Columbia/HCA (later HCA Healthcare) agreed to two major settlements with the U.S. Department of Justice. The first in 2000 totaled over $840 million, and a subsequent civil agreement in 2003 required an additional $631 million in fines and damages. [1, 2, 3, 4]
• Scott’s Involvement: Scott resigned in 1997 just as the FBI was raiding corporate facilities. During civil depositions related to the case, he invoked his Fifth Amendment right against self-incrimination 75 times. He walked away with roughly $300 million in stock options and severance. [1, 2]
• Scott’s Defense: While he acknowledged “mistakes were made” under his watch, Scott has consistently maintained he was unaware of the fraudulent billing activities. He has often claimed the investigation was politically motivated. [1, 2, 3]