BUSINESSThe hits keep coming: More HealthSouth indictmentsProsecutors probe an alleged bribery plot.By Katherine Vogt, amednews staff. July 26, 2004. Two more former HealthSouth executives have been indicted on criminal charges for their roles in an alleged bribery and kickback scheme related to a contract that the outpatient services giant had with a hospital in Saudi Arabia. A grand jury indicted Robert E. Thomson and James C. Reilly on conspiracy charges, federal prosecutors announced July 1. Two other former HealthSouth executives already had pleaded guilty to charges for their involvement in the alleged scheme. Thomson, a former division president, and Reilly, a former group vice president, were allegedly involved in a scheme to bribe an executive of a Saudi Arabian foundation to help HealthSouth secure a contract to provide staffing and management services for a hospital, prosecutors said. The contract, which was eventually executed, said HealthSouth would get $10 million a year for five years. The indictment alleged that the Saudi Arabian foundation's director general solicited a $1 million payment from HealthSouth as a sort of "finder's fee." Against advice of counsel, the company allegedly agreed to pay the director $500,000 per year for five years in exchange for his agreement to execute the contract. Then HealthSouth officers allegedly devised a scheme to conceal the payments. [...]Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2004 American Medical Association. All rights reserved.
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