Question

Take a moment and do some qucik research on this case... It involves, Rick Scott and the company HCA (Hospital Corporation of America). This fraud case goes back to the 1990s but it is one that involves interesting players and remains a great case study that is still reviewed in many academic settings to this date.

Discuss Rick Scott and the downfall of HCA. What information did you find about each issue and your personal thoughts on the subject?

Answer 1

Rick Scott was the co founder of Columbia hospital corporation which later merged with Hospital corporation of America to for the largest for profit hospital chain in the America. In 1997 when HCA was charged with cases of fraud Rick Scott was the CEO of the group and was forced to resign soon after, If you look at the charges those wer of serious in nature and HCA itself pleaded guilty to many of those charges including guilty for overcharging the government by reimbursing the marketing cist,, defrauded Medicare by colluding with doctors to inflate the seriousness of diagnosis, paying kickbacks to doctor and health professional etc. The litigation resulted in HCA to cough up nearly $2 billion but wjlhen you look from Rick Scott perspective he wasn't charged with criminal activities and instead recieved $10 mm as settlement money along side he also got to keep $350mm worth of stocks as well So, In my view the case was clear and this would have not been possible without CEO being party to it and hence he was let off easily