Something Tells Me Louisville's Passport Medicaid Provider Will Be A HUGE Topic In Kentucky's Governor's Race.
Gov. demands resignations of top Passport managers
By ROGER ALFORD
FRANKFORT, Ky. (AP) -- Gov. Steve Beshear demanded Wednesday the resignations of top managers at the state's largest Medicaid provider some three weeks after an audit found lavish spending by the company.
A government review found the Louisville-based Passport Health Plan had spent nearly $230,000 on travel and $73,000 on meals over the past three years, in addition to about $1 million for lobbying and public relations.
In a move to rebuild public trust, the organization named Louisville accountant Mark B. Carter as interim chief executive officer on Wednesday. Carter replaces Dr. Larry Cook, who had previously agreed to step down when an interim CEO was hired.
Passport holds the state's largest Medicaid contract, a $793 million deal to provide medical care to needy residents in the Louisville area. When auditors turned up the questionable spending, Beshear demanded changes.
The Passport board of directors acknowledged that mistakes had been made and that corrections were forthcoming.
Beshear told reporters Wednesday that he wants Cook to relinquish his seat on the board of directors, and he called for two other top executives to resign. Beshear said those demands have to be met if Passport wants to keep its Medicaid contract with the state.
"I was encouraged by the investors' comments that they all realized that there are problems that have to be addressed immediately," Beshear said Wednesday. "They want the Passport plan to continue, and they are willing to take whatever steps are necessary to make sure that happens."
The Passport board of directors has instituted new policies aimed at curbing the kind of free spending on meals, luxury hotels, and lobbying turned up by government auditors.
In a press release on Wednesday, Passport announced that it would no longer lobby state government officials, meeting another of Beshear's demands.
Beshear also called Wednesday for Passport to hire a corporate compliance officer and an internal auditor to ensure financial accountability and integrity.
Cook said in a statement Wednesday afternoon that members of the board of directors had "a frank and cordial meeting" with Beshear and that they are reviewing the governor's demands.
"We'll be making changes as needed, and look forward to a continuing dialogue with the state to work through some of the more complex issues," he said in the statement.
Beshear said failing to meet his demands won't bode well for Passport.
"Should they feel they can not take those steps, we understand it, but it will result in the contract terminating on June 30, and that contract will not be renewed," Beshear said.
By ROGER ALFORD
FRANKFORT, Ky. (AP) -- Gov. Steve Beshear demanded Wednesday the resignations of top managers at the state's largest Medicaid provider some three weeks after an audit found lavish spending by the company.
A government review found the Louisville-based Passport Health Plan had spent nearly $230,000 on travel and $73,000 on meals over the past three years, in addition to about $1 million for lobbying and public relations.
In a move to rebuild public trust, the organization named Louisville accountant Mark B. Carter as interim chief executive officer on Wednesday. Carter replaces Dr. Larry Cook, who had previously agreed to step down when an interim CEO was hired.
Passport holds the state's largest Medicaid contract, a $793 million deal to provide medical care to needy residents in the Louisville area. When auditors turned up the questionable spending, Beshear demanded changes.
The Passport board of directors acknowledged that mistakes had been made and that corrections were forthcoming.
Beshear told reporters Wednesday that he wants Cook to relinquish his seat on the board of directors, and he called for two other top executives to resign. Beshear said those demands have to be met if Passport wants to keep its Medicaid contract with the state.
"I was encouraged by the investors' comments that they all realized that there are problems that have to be addressed immediately," Beshear said Wednesday. "They want the Passport plan to continue, and they are willing to take whatever steps are necessary to make sure that happens."
The Passport board of directors has instituted new policies aimed at curbing the kind of free spending on meals, luxury hotels, and lobbying turned up by government auditors.
In a press release on Wednesday, Passport announced that it would no longer lobby state government officials, meeting another of Beshear's demands.
Beshear also called Wednesday for Passport to hire a corporate compliance officer and an internal auditor to ensure financial accountability and integrity.
Cook said in a statement Wednesday afternoon that members of the board of directors had "a frank and cordial meeting" with Beshear and that they are reviewing the governor's demands.
"We'll be making changes as needed, and look forward to a continuing dialogue with the state to work through some of the more complex issues," he said in the statement.
Beshear said failing to meet his demands won't bode well for Passport.
"Should they feel they can not take those steps, we understand it, but it will result in the contract terminating on June 30, and that contract will not be renewed," Beshear said.
Labels: Keeping them honest
posted by KYJurisDoctor at 7:13 PM
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