HHS increases total LIHEAP funding available to help low-income families to $3.9 billion

Georgia's allocation will be $86,178,083.

Today U.S. Department of Health and Human Services Secretary Kathleen Sebelius announced the availability of additional funding to help eligible low-income families meet their home energy needs, bringing the total made available since October 1 to $3.9 billion. These funds will go to states, tribes and territories under the Low Income Home Energy Assistance Program (LIHEAP) and are available under the terms of the latest continuing resolution.

"Much of the country has already experienced a very cold winter," said Secretary Sebelius. "Today's additional funds will help struggling families keep safe and warm for the remainder of the season."

LIHEAP assists qualified families with their home energy needs such as heating in the winter, cooling their homes in the summer, and insulating their homes to make them more energy efficient and reduce their energy costs. By doing so, families are less likely to have to choose between paying their energy bills and other necessities, such as food or medicine. Energy assistance can reduce illness or the risk of fires that can break out when households turn to using candles or space heaters because they cannot pay their electricity or gas bill.

The block grant funds released today supplement two previous releases of funds under continuing resolutions in Fiscal Year 2011.

"As temperatures drop, heating costs can pose a serious challenge for struggling families," said David A. Hansell, HHS acting assistant secretary for children and families. "At the start of a new year, these additional LIHEAP funds will help ease the financial burdens for many families."

A complete list of funds available to states today is below:
http://www.acf.hhs.gov/news/press/2011/liheap_allocation.html

Individuals interested in applying for energy assistance should contact their local/state LIHEAP agency. For more information, go to: http://www.acf.hhs.gov/programs/ocs/liheap/ or http://www.acf.hhs.gov/programs/ocs/liheap/brochure/brochure.html.

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Mullis Co-authors Anti-Illegal Immigration Legislation

Senate Transportation Chairman Jeff Mullis (R-Chickamauga) will co-author legislation that will provide for greater enforcement of federal illegal immigration laws in Georgia.  Mullis will join fellow Georgia Senate GOP colleagues later this summer for the official announcement of the legislation.

“The United States is a land of opportunity for all who want to come here and contribute to our society in a lawful manner.  We welcome anyone who wants to become a legal resident of the United States to achieve the American dream.  The fact remains that those who are reside illegally are breaking the law and utilizing resources that should be for those who obtain legal residency,” said Mullis.  “Businesses, local governments and our university system must comply with federal and state illegal immigration laws to relieve wasteful spending and get legal residents and Georgians back to work.”

“Senator Mullis is one of Georgia’s leading voices on the issue of enforcing immigration law. We stand shoulder to shoulder in supporting enforcement not amnesty,” said Senate Majority Leader Chip Rogers (R-Woodstock).

Facts on Illegal Immigrants in Georgia:

• Georgia had an estimated illegal immigration population of 490,000 in 2008.
• The Federation for American Immigration Reform (FAIR) estimates that the annual fiscal burden on Georgia taxpayers from illegal immigration is more than $1.6 billion.
• Georgians spend about $1.37 billion annually on educating the children of illegal immigrants.
• Nearly one in ten K-12 public school students in Georgia is the child of an illegal alien, and this presence has been increasing as the illegal resident population increases.
• State-funded uncompensated outlays for health care provided to Georgia’s illegal alien population amount to an estimated $210 million a year.
• The cost of incarcerating deportable aliens in Georgia’s state and local prisons amounts to about $22.6 million a year.

Federal Statistics:

• The number of illegal immigrants in the U.S. roughly doubled, jumping from about 5 million in 1996 to about 11 million today.  (A 2009 report from the Department of Homeland Security reflects that the number of illegal immigrants in the U.S. stands at around 10.8 million.)
• Federal estimates suggest that over 90 percent of the increase in the foreign-born population in Georgia since 2000 has resulted from illegal immigration.

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Civitium Helps North Georgia Network Cooperative Land $33 Million Broadband Stimulus Award with Vice President Biden Making the Award Personally

/PRNewswire/ -- Vice President Joseph Biden presented a $33 million federal grant award to the North Georgia Network Cooperative (NGN) today. Under the direction of the Development Authority of Lumpkin County, Ga., Civitium led the development of the project from inception through feasibility, network design, organizational structure, financial planning and grant preparation.

Civitium, a specialized consulting firm focused on the planning and management of next-generation broadband networks, worked with leaders throughout north Georgia since early 2008 to develop and mature the project. The firm also supported NGN during an intense due diligence phase with the NTIA.

"This project has the potential to transform north Georgia's economic development potential," said Greg Richardson, founder and managing partner for Civitium. "We are honored to have played a part in helping NGN reach this important milestone."

Civitium's skill in the public, private and nonprofit broadband sectors helped produce a collaborative model that leverages the strengths of numerous stakeholders. The network relies on the resources of local electric utilities for customer service and network operations and incorporates an advisory board of economic development and public benefit organizations. The project is highly efficient, making use of existing fiber where available.

Bruce Abraham, executive director of the Development Authority of Lumpkin County, the lead public agency for the project, stated, "We couldn't have reached this point without the advice and assistance of the Civitium team. Their passion, commitment, expertise and problem-solving ability is unparalleled in my 20-plus years of experience."

The NGN network will traverse twelve counties in north Georgia, providing a backbone that directly connects to the southeast's largest Internet exchange in Atlanta. The network will serve dozens of anchor institutions along this backbone, including public schools, local governments, technical colleges, large businesses, healthcare providers and other organizations with high-bandwidth needs. In addition, it will offer advanced fiber-to-the-home services in key underserved areas. Finally, the network will adhere to so-called open access principles, insuring that any cable, DSL, or wireless operator will be able to interconnect and extend their own services throughout the region.

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Governor Perdue Announces Nearly $37 Million in Grant Awards

Governor Sonny Perdue today announced Georgia has been awarded nearly $37 million in federal grants from the U. S. Department of Housing and Urban Development (HUD) for the state’s Community Development Block Grant Program (CDBG) and Community HOME Investment Program (CHIP).

“The Community Development Block Grant program provides an essential financial resource to Georgia’s smaller communities in their efforts to fund projects that will assist low- and moderate-income citizens,” said Governor Perdue. “As communities large and small are making tough spending choices, today’s grant announcement represents an important funding source for programs that improve quality of life, economic development and job creation programs.”

Nearly $32.6 million allocated for CDBG awards will be used to support projects in 65 Georgia communities. Projects include water and sewer improvements, senior citizen facilities, health facilities, programs for at-risk children and replacement or rehabilitation of sub-standard and dilapidated housing. A complete list of projects and award amounts is included at the end of the news release.

The CDBG program is administered by the Georgia Department of Community Affairs (DCA), which uses funds allocated through HUD to support local initiatives that focus on improving living conditions and economic opportunities throughout the state.

Governor Perdue also announced that Georgia was awarded nearly $4.4 million in Community HOME Investment Program funds. CHIP funds will assist 15 Georgia communities increase the supply of safe and affordable housing for low- and moderate-income persons.

“CHIP funds remain an essential resource for those communities that seek to increase available units and improve the standard of living for their fellow Georgians,” said Governor Perdue.
Added DCA Commissioner Mike Beatty: “We are pleased that these funds will be used to fund critical community development projects. Each year, the annual CDBG and CHIP funding announcement demonstrates how federal, state and local partners are working together to support local communities.”

For more information regarding Georgia’s CDBG and CHIP programs, please visit DCA’s website at http://www.dca.ga.gov/communities/CDBG/programs/CDBGCHIP.asp or contact DCA Assistant Commissioner Brian Williamson at (404) 679-1587 or brian.williamson@dca.ga.gov. In addition, an informational workshop for CDBG and CHIP recipient communities is scheduled for Sept. 24-25 in Pine Mountain. Recipient communities may direct workshop-related questions to Lisa Smith at (404) 679-5276 or lisa.smith@dca.ga.gov .

A complete listing of CDBG and CHIP awards follows. Communities are listed in alphabetical order.

Community Development Block Grant Awards

Recipient, Project Description, Planned Amount
City of Alma, Sewer Improvements, $500,000
City of Arabi , Water Improvements, $468,144
City of Argyle, Water Improvements, $475,118
City of Ashburn, Multi Infrastructure Improvements, $500,000
Atkinson County, Health Center, $458,875
City of Baconton, Drainage Improvements, $499,964
Berrien County, Boys and Girls Club, $500,000
City of Blakely, Head Start Facility, $500,000
City of Boston, Sewer Improvements, $500,000
City of Canon, Water Improvements, $500,000
City of Carrollton, Health Center, $500,000
City of Cartersville, Drainage/Streets Improvements, $500,000
City of Chickamauga, Water/Sewer Improvements, $500,000
City of Cochran, Drainage/Streets Improvements, $465,998
Coffee County, Drainage/Streets Improvements, $500,000
City of Colquitt, Multi Activity Program, $703,378
City of Damascus, Water Improvements, $396,057
City of Donalsonville, Water Improvements, $500,000
Dooly County, Housing Improvements, $488,047
City of Douglas, Housing Improvements, $210,000
City of Douglasville, Boys and Girls Club, $500,000
City of Eastman, Sewer Improvements, $500,000
City of Ellijay, Sewer Improvements, $500,000
City of Greenville, Housing Improvements, $500,000
City of Griffin, Water/Sewer Improvements, $500,000
Hart County, Water Improvements, $500,000
City of Homeland, Drainage/Streets Improvements, $269,377
City of Homerville, Sewer Improvements, $500,000
City of Leesburg, Drainage/Streets Improvements, $500,000
City of Milan, Drainage/Streets Improvements, $497,761
City of Milledgeville, Housing Improvements, $453,918
City of Millen, Sewer Improvements, $500,000
City of Molena, Water Improvements, $500,000
City of Monroe, Sewer Improvements, $500,000
City of Moultrie, Drainage Improvements, $500,000
City of Ocilla, Sewer Improvements, $400,775
Pierce County, Drainage/Streets Improvements, $497,711
City of Pineview, Water Improvements, $462,808
City of Portal, Sewer Improvements, $489,840
City of Quitman, Multi Activity Program, $800,000
Randolph County, Drainage/Streets Improvements, $465,049
City of Reynolds, Sewer Improvements, $500,000
City of Richland, Water Improvements, $500,000
City of Ringgold, Sewer Improvements, $500,000
City of Rockmart, Multi Activity Program, $800,000
City of Sandersville, Multi Activity Program, $800,000
City of Siloam, Water Improvements, $331,900
City of Smithville, Housing Improvements, $500,000
City of Sumner, Water Improvements, $429,775
City of Sylvester, Water/Sewer Improvements, $500,000
Talbot County, Multi Activity Program, $800,000
City of Tarrytown, Water Improvements, $445,734
Taylor County, Sewer Improvements, $500,000
Thomas County, Drainage/Streets Improvements, $294,463
City of Thomasville, Drainage/Streets Improvements, $500,000
City of Thomson, Multi Activity Program, $800,000
Tift County, Drainage/Streets Improvements, $500,000
City of Toccoa, Multi Activity Program, $589,959
City of Union Point, Water Improvements, $500,000
City of Uvalda, Sewer Improvements, $485,000
City of Varnell, Senior Center, $500,000
City of Warrenton, Sewer Improvements, $500,000
City of Woodland, Drainage/Streets Improvements, $295,753
City of Wrens, Sewer Improvements, $500,000
City of Wrightsville, Sewer Improvements, $500,000
TOTAL, $32,575,404

Community HOME Investment Program Awards

Recipient, Project Description, Amount
Ben Hill County, Housing Improvements, $300,000
City of Cartersville, Housing Improvements, $300,000
Dooly County, Housing Improvements, $300,000
City of Douglas, Housing Improvements, $281,605
Hall County, Housing Improvements, $300,000
City of LaGrange, Housing Improvements, $300,000
Lowndes County, Housing Improvements, $300,000
City of Marshallville, Housing Improvements, $300,000
City of McIntyre, Housing Improvements, $300,000
Randolph County, Housing Improvements, $300,000
City of Rockmart, Housing Improvements, $300,000
City of Rome, Housing Improvements, $300,000
City of Sandersville, Housing Improvements, $300,000
City of Thomasville, Revitalization Area Strategy, $200,000
City of Tifton, Housing Improvements, $300,000
TOTAL, $4,381,605
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Federal minimum wage will increase to $7.25 on July 24

/PRNewswire/ -- The U.S. Department of Labor reminds employers and employees that the federal minimum wage will increase to $7.25 on Friday, July 24. With this change, employees who are covered by the federal Fair Labor Standards Act (FLSA) will be entitled to pay no less than $7.25 per hour.

"This administration is committed to improving the lives of working families across the nation, and the increase in the minimum wage is another important step in the right direction," said Secretary of Labor Hilda L. Solis. "This well-deserved increase will help workers better provide for their families in the face of today's economic challenges. I am especially pleased that the change will benefit working women, who make up two-thirds of minimum wage earners."

This increase is the last of three provided by the enactment of the Fair Minimum Wage Act of 2007, which amended the FLSA to increase the federal minimum wage in three steps: to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24, 2008; and now to $7.25 per hour effective July 24, 2009. The latest change will directly benefit workers in 30 states (Alabama, Alaska, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin and Wyoming) where the state minimum wage is currently at or below the federal minimum wage or there is no state minimum wage. It will also benefit workers in the District of Columbia, where the minimum wage is required to be $1 more than the federal minimum wage.

A family with a full-time minimum wage earner would see its monthly income increase by about $120. That is more than a week's worth of groceries for an average family of four or more than one week's utility bills. The $120 buys three tanks of gas for a small car. The $120 would easily cover the cost of replacing all the light bulbs in a typical home with compact fluorescent light bulbs -- which would save the family money in the long term and be an important step toward a greener country. The benefits are not just for full-time workers. About half of minimum wage workers are part-timers, and they, too, are going to see a very welcome boost to their incomes.

Every employer of workers subject to the FLSA's minimum wage provisions must post, and keep posted in each of its establishments, a notice explaining this act. The notice must be posted in conspicuous places to permit employees to readily read them. Posters and other compliance assistance materials concerning the minimum wage increase are available free of charge from the Labor Department's Wage and Hour Division and may also be obtained from the agency's Web site at http://www.wagehour.dol.gov/.

Many states have minimum wage laws with provisions that differ from the federal law. When an employer is subject to both, the employer must pay the higher of the two rates.

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More Than $1 Billion Recovered by Justice Department in Fraud and False Claims in Fiscal Year 2008

PRNewswire-USNewswire/ -- The United States secured $1.34 billion in settlements and judgments in the fiscal year ending Sept. 30, 2008, pursuing allegations of fraud against the federal government, the Justice Department announced today. This brings total recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, to more than $21 billion.

"Now, more than ever, it is crucial that taxpayer dollars aren't lost to fraud," said Gregory G. Katsas, Assistant Attorney General for the Department's Civil Division. "The billion dollars collected this year is only part of the story. By rooting out fraud and vigorously pursuing it, the Department, with the help of concerned citizens who report fraud in hotline calls and in qui tam complaints, undoubtedly saves the country many times that amount in aborted schemes and misconduct."

Assistant Attorney General Katsas also paid tribute to Senator Charles Grassley of Iowa and Representative Howard L. Berman of California who sponsored the 1986 amendments to the False Claims Act, the government's primary weapon to fight government fraud. "Without this important legislation strengthening the Act and, in particular, the qui tam provisions which encourage private citizens to uncover government fraud, such recoveries would not have been possible."

Almost 78 percent of this year's recoveries are associated with suits initiated by private citizens (known as "relators") under the False Claims Act's qui tam provisions. These provisions authorize relators to file suit on behalf of the United States against those who have falsely or fraudulently claimed federal funds. Such cases run the gamut of federally funded programs from Medicare and Medicaid to defense procurement contracts, disaster assistance loans and agricultural subsidies. Persons who knowingly make false claims for federal funds are liable for three times the government's loss plus a civil penalty of $5,500 to $11,000 for each claim.

Relators recover 15 to 25 percent of the proceeds of a successful suit if the United States intervenes in the qui tam action, and up to 30 percent if the government declines and the relator pursues the action alone. In fiscal year 2008, relators were awarded $198 million. (This figure does not include relator shares awarded after Sept. 30, 2008.)

As in the last several years, health care accounted for the lion's share of fraud settlements and judgments-$1.12 billion. This number includes both qui tam claims and those initiated by the United States. The Department of Health and Human Services reaped the biggest recoveries, largely attributable to its Medicare program and the federal/state Medicaid program which funds health care for the needy. Recoveries were also made by the Office of Personnel Management which administers the Federal Employees Health Benefits Program, the Department of Defense for its TRICARE insurance program, the Department of Veterans Affairs and others.

The largest health care recoveries came from pharmaceutical companies and related entities. Settlements with Cephalon Inc., Merck & Co. and CVS Caremark Corp. accounted for more than $640 million. In addition to federal recoveries, these pharmaceutical fraud cases returned $430 million to state Medicaid programs.

The Civil Division's investigation of the pharmaceutical industry is part of a Department-wide effort. Typical allegations include "off-label" marketing, which is the illegal promotion of drugs or devices that are billed to Medicare and other federal health care programs, for uses that were neither found safe and effective by the Food and Drug Administration nor supported by the medical literature; paying kickbacks to physicians, wholesalers and pharmacies to induce drug or device purchases; establishing inflated drug prices knowing that federal health care programs use these prices to reimburse providers, then marketing the "spread" between the federal reimbursement and the provider's lower cost to induce drug purchases; and knowingly failing to report the company's true "best price" for a drug to reduce rebates owed to the Medicaid program.

The Department also collected $133 million in defense procurement fraud. Defense contract recoveries included a $53 million settlement with Pratt & Whitney, a division of United Technologies Corporation, and PCC Airfoils LLC, a subsidiary of Precision Castparts Corporation. The settlement resolved allegations that Pratt & Whitney and PCC Airfoils knowingly submitted false claims to the Air Force for defective turbine blades sold to the government to retrofit the F100-PW-220 engines in F-16 and F-15 aircraft. This case was pursued as part of a National Procurement Fraud initiative, launched in October 2006, to promote the early detection, identification, prevention and prosecution of procurement fraud.

FACT SHEET: SIGNIFICANT RECOVERIES IN FISCAL YEAR 2008

Among the Department's most significant settlements and judgments in fiscal year 2008 were:

* $361.5 million from Merck & Company to resolve allegations that the pharmaceutical manufacturer knowingly failed to pay proper rebates to Medicaid and other government health care programs, and paid kickbacks to health care providers to induce them to prescribe the company's products. The settlement resulted from two lawsuits brought under the qui tam provisions of the False Claims Act.

In the first, which accounted for $221.9 million of the $361.5 settlement, a former Merck employee alleged that the company violated the Medicaid Rebate Statute by providing deep discounts to hospitals that used its drugs Zocor and Vioxx in place of competitors' brands, without reporting those discounts and other cost information to reflect its "best price," as required by the statute to ensure that Medicaid obtains the benefit of the same price concessions other purchasers enjoy. This suit also alleged that Merck paid kickbacks to physicians, disguised as fees for training, consultation, and market research, to induce them to prescribe its drugs, also contrary to law. The United States paid the relator $46.6 million as his share of the settlement under the False Claims Act's qui tam provisions. In addition to the federal recovery, Merck paid $162 million to state Medicaid programs.

In the second lawsuit, which accounted for the remaining $139.6 million of the settlement, a physician alleged that Merck provided deep discounts to hospitals to induce them to administer its antacid, Pepcid, as a means to boost sales through continued use after the patient's discharge. The suit went on to allege, similar to the first suit, that Merck knowingly failed to report these discounts as required by the Medicaid Rebate Statute, which resulted in illegal and inflated claims to federal and state Medicaid programs. In addition to paying the United States $139.5 million in federal claims, Merck paid $114 million to settle state Medicaid claims. The relator received $24 million as his federal share of the settlement and an additional sum for the state recoveries. Merck also entered into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services (HHS) to ensure compliance with federal health insurance programs in the future.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/February/08_civ_094.html
http://www.usdoj.gov/usao/pae/News/Pr/2008/feb/steinkrelease.pdf


* $258 million from Cephalon Inc. to resolve claims that the company marketed three drugs for uses not approved by the Food and Drug Administration (FDA). By promoting the drugs for so-called "off label" uses, Cephalon caused providers to charge federal health insurance programs such as Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits Program for unapproved uses of the drugs not covered by the programs. The settlement resolved four lawsuits, three of which were brought by former Cephalon sales representatives under the qui tam provisions of the False Claims Act. Consistent with those provisions, the relators who filed the suits will share $46.7 million as their part of the settlement. In addition to the $258 million recovered for federal programs, the United States recovered $116 million for the Medicaid programs in 14 states and the District of Columbia. Cephalon also pleaded guilty to related criminal charges, paid $50 million in fines and forfeitures and entered into a five-year Corporate Integrity Agreement with the Inspector General of HHS to ensure strict compliance in the future.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/September/08-civ-860.html


* $225 million from Amerigroup Corporation to settle both federal and state allegations that Amerigroup, together with its Illinois subsidiary, systematically avoided enrolling pregnant women and other high-cost patients in the company's managed care program in Illinois. The program was funded by Medicaid, which required open enrollment to all eligible beneficiaries. By excluding pregnant women and other high-cost patients, Amerigroup increased its profits in conflict with the law. The United States and Illinois jointly brought suit under the federal False Claims Act and the Illinois Whistleblower Reward and Protection Act. In October 2006, following a lengthy trial, the court entered judgment for $334 million. Amerigroup appealed and the parties entered negotiations leading to settlement. The relator received $56.25 million as his share of the federal and state recoveries. In conjunction with the settlement, Amerigroup entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/August/08-civ-723.html



* $75 million to settle claims that Kyphon Inc., now Medtronic Spine LLC, violated the False Claims Act by knowingly causing the submission of false claims to Medicare for its kyphoplasty procedure-a minimally-invasive surgery used to treat compression fractures of the spine. The settlement resolved a lawsuit filed by two former Kyphon employees under the qui tam provisions of the False Claims Act. The suit alleged that Kyphon engaged in a seven-year marketing scheme that resulted in certain hospitals billing Medicare for kyphoplasties performed on an inpatient basis rather than for less costly and clinically appropriate outpatient kyphoplasty treatment. This conduct resulted in the Medicare program paying more for inpatient kyphoplasty procedures. The relators received a total of $14.9 million as their share of the settlement. In conjunction with the settlement, Kypon entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/May/08-civ-455.html


* $74 million from Staten Island University Hospital (SIUH) to resolve two False Claims Act qui tam suits and two other matters. In the first action, a physician and former SIUH Director of Chemical Dependency Services, filed suit alleging that SIUH fraudulently billed Medicare and Medicaid for substance abuse and alcohol detoxification services provided to inpatients in unlicensed beds, in violation of state law, between 1994 and 2000. SIUH paid the United States $11.8 million in settlement of this qui tam action, with the relator receiving $2.3 million as his share of the government's recovery. In related allegations of inflated Medicaid billings asserted under New York State's false claims statute, SIUH paid New York $14.88 million, with the relator receiving $2.97 million as his share of the state's recovery.

In the second action, the widow of an SIUH cancer patient filed suit alleging that between 1996 and 2004, SIUH submitted false claims to Medicare and TRICARE using incorrect codes for cancer treatments not covered by the programs. SIUH paid the United States $25 million, including a relator share award of $3.75 million. In the third matter, the United States alleged that SIUH deliberately inflated the number of residents it employed to fraudulently increase Medicare reimbursement between 1996 and 2003. SIUH paid the United States $35.7 million in settlement of this matter. Lastly, SIUH paid the United States $1.47 million to settle allegations that it billed Medicare and Medicaid for treating psychiatric patients in unlicensed beds from 2003-2005. In conjunction with the settlement, SIUH also entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/usao/nye/pr/2008/2008sep15.html


* $60 million from Lester E. Cox Medical Centers, a health care system headquartered in Springfield, Mo., to settle claims that it violated the False Claims Act, the Anti-Kickback Statute and the Stark Statute between 1996 and 2005. The United States alleged that Cox entered into illegal financial relationships with referring physicians at a local physician group and engaged in improper billing practices with respect to Medicare. Under the Stark Statute, providers such as Cox are prohibited from billing Medicare for referrals from doctors with whom the providers have a financial relationship, unless that relationship falls within certain exceptions. The United States contended that Cox and the referring physicians ran afoul of the Stark Statute, as well as the Anti-Kickback Statute, which prohibits offering inducements to providers in return for patient referrals. The settlement also resolves claims that Cox included non-reimbursable costs on its Medicare cost reports and improperly billed for dialysis services. In conjunction with the settlement, Cox entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/July/08-civ-638.html
http://www.usdoj.gov/usao/mow/news2008/cox.settlement.htm


* $53 million from Pratt & Whitney, a division of United Technologies Corporation, and PCC Airfoils LLC, a subsidiary of Precision Castparts Corporation, to resolve allegations that the companies knowingly submitted false claims for defective turbine blades purchased by the Air Force to retrofit the F100-PW-220 engines found in F-16 and F-15 aircraft. The settlement includes corrective action to replace defective blades and inspection of potentially serviceable blades to ensure their integrity. The case was pursued as part of a National Procurement Fraud Initiative launched in October 2006, to promote the early detection, identification, prevention and prosecution of procurement fraud.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/August/08-civ-675.html



* $26 million from St. Joseph's Hospital of Atlanta to resolve allegations that the hospital falsely claimed Medicare reimbursement for inpatient admissions that were, in fact, less costly outpatient visits. A registered nurse, formerly employed by the hospital, initiated suit under the False Claims Act's qui tam provisions. The complaint alleged that the hospital improperly billed for short inpatient admissions, usually of one day or less, when the service should have been billed as an outpatient "observation" or emergency room visit. Medicare reimburses hospitals a higher rate for inpatient admissions than it does for observation care or emergency room visits. The nurse who triggered the investigation received $4.94 million as her share of the recovery. St. Joseph's entered into a Corporate Integrity Agreement with the Inspector General of HHS in conjunction with the settlement, to ensure future compliance.

For the original press release, see:
http://www.usdoj.gov/usao/gan/press/2007/12-21-07.pdf


$23.2 million from Bechtel Infrastructure Corp. and PB Americas Inc. to settle allegations of false claims for federal highway funds in connection with the firms' failure to provide adequate management and quality assurance services during the construction of the Central Artery Tunnel, known as the Big Dig, in Boston. The recovery, part of a $458 million settlement of state and federal claims, resolved parts of a qui tam lawsuit, a related federal investigation and additional claims that Bechtel and PB Americas violated federal and state criminal and civil laws in connection with their services on the Big Dig. In addition to the federal recovery, the companies paid $40 million in state claims and $335 million into a state warranty fund for future repairs to the Big Dig. The private citizen who filed the suit received $54,000 and $96,000 as his share of the federal and state recoveries, respectively.

For the original press release, see:
http://www.usdoj.gov/opa/pr/2008/January/08_crt_048.html
http://boston.fbi.gov/dojpressrel/pressrel08/govtclaimsettlement012308.htm



* $21.1 million from CVS Caremark Corp. to settle claims that from 2000-2006, the company illegally switched patients from the tablet version of the drug Ranitidine (generic Zantac) to a more expensive capsule version for the sole purpose of increasing Medicaid reimbursement. For example, CVS pharmacies in Illinois would charge Medicaid $79.80 for 60 Ranitidine capsules, rather than $17.10 for the tablets prescribed, increasing reimbursement by $62.70 on a single prescription. CVS Caremark is headquartered in Rhode Island and operates more than 6,000 pharmacies nationwide. The settlement resolves qui tam claims under federal and state false claims statutes. In addition to the federal recovery, CVS Caremark paid $15.6 million to 23 states and the District of Columbia. The qui tam plaintiff received $4.3 million as his share of the federal and state settlements. CVS Caremark also entered into a Corporate Integrity Agreement with the Inspector General of HHS to ensure future compliance.

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Land Banking Key Solution For Vacant, Abandoned Properties, Says Emory Professor

The federal government needs to play a critical role in the use of land banking programs to alleviate one of the consequences of the nation's mortgage foreclosure crisis – vacant and abandoned properties, says Emory Law professor Frank S. Alexander, one the nation's leading experts on local government land banks.

In a paper released Oct. 29 by the Brookings Institution's Metropolitan Policy Program, Alexander says that more and more communities are "stressed by the catastrophic mortgage foreclosure crisis and the long-run decline of older, industrial regions," and are struggling to deal with vacant and abandoned properties. Read the paper at: http://www.brookings.edu/papers/2008/1028_mortgage_crisis_alexander.aspx .

"To alleviate this drag on national prosperity, the federal government should advance policies that support regional and local land banking for the 21st century," writes Alexander, who directs the Project on Affordable Housing and Community Development at Emory's Center for the Study of Law and Religion (CSLR). Alexander, CSLR's founding director, is the author of the leading text in the country on land banking, "Land Bank Authorities: A Guide for the Creation and Operation of Local Land Banks."

Land banking enables local governments to acquire vacant and abandoned properties and convert them to productive use or hold them for long-term strategic public purposes. Common re-uses of such property are affordable housing, mixed-use developments, or mixed-income housing, all provided by not-for-profit entities.

The Emergency Assistance Act in the Home and Economic Recovery Act of 2008, passed in July, recognized land banking as a federal concern and funded it with $3.92 billion, but Alexander says neither the bill's clarity for implementation nor the amount of funding it provides are enough.

"It does not come close to meeting the costs associated with the two million foreclosures projected by the end of 2008 and the local revenues lost from vacant and abandoned properties," he writes, adding that earlier drafts of the bill called for $15 billion in loans and grants.

"The role of land banking is not to replace or supplant the open market; it steps in when there is a failure of market conditions," says Alexander.

Alexander reports that during the mortgage crisis of the past two years, foreclosures doubled nationwide -- in August 2008 alone, one of every 416 households received a foreclosure notice. And, almost 600,000 vacant, for-sale homes were added to weak real estate markets. This decline has compounded the long-term problem of vacancies and abandonments in older, industrial regions.

"When left unaddressed, these problem properties impose severe costs on neighborhoods, including reduced property values and tax revenues; increased arson and crime; and greater demands for police surveillance and response," explains Alexander.

In addition to capitalizing local and regional land banking, Alexander recommends that federal policy provide incentives for reforming local code enforcement and state tax foreclosure procedures, and incentives for communities to develop inter-jurisdictional entities that will allow them to address property issues across city and county boundary lines.

"Forty years ago, land banking was encouraged to be a part of federal housing and urban development policy. It is time for it to be implemented. The need is greater than ever; the time is now; and the opportunity is here," he concludes.

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Credit Aftershocks Damage Nation’s Growth Prospects; Oil Holds the Key to Fed’s Next Move, Says Georgia State Forecaster

The aftershocks from the credit crisis which continue to spread to other sectors have not only put the economy into a recessionary state but also have damaged its growth prospects until 2010, according to Dr. Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University. In his Forecast of the Nation, released today, Dhawan warns that any additional uptick in oil prices could put the economy further at risk and recovery further away.

“Despite all of the aftershocks from the credit fallout, oil has been the wild card testing the Fed’s patience,” he said. “If the price of oil does not retreat below $100 per barrel by October on a sustained basis, worries of inflation will cause the Fed to raise rates much earlier than expected.”

Dhawan expects the price of oil will drop to an average of $89 per barrel in the fourth quarter of 2008 allowing the Fed to hold off on rate hikes until next spring. However, he anticipates that the Fed will be somewhat aggressive raising the federal funds rate by 250 basis points by mid-2010.

“The Fed hikes will begin even before growth catches its stride which is a departure from the norm,” he said. “But rather than waiting until job growth picks up to normal levels, the Fed will hike the federal funds rate to show it is serious about containing inflation.”

While Dhawan says that the Fed will be able to stave off inflation, he cautions that the fragile health of the banks will cause the economy to recover at a slow rate.

“Despite efforts by the Fed and the Treasury to help bail out the financial industry, lenders still need to keep liquidity or cash on hand to deal with charge-offs that they will have to take as loans continue to go sour,” he said. “Still, some banks are on the brink of failure and it will be up to the FDIC to bail them out and should they run short of funds, look for the government to bail out the FDIC leaving taxpayers with the tab. Thus my forecast calls for an anemic recovery in 2009 and a below potential growth in 2010.”

Highlights from the Economic Forecasting Center's National Report:
The GDP growth fails to cross the 2.0% mark until late-2009. Overall, real GDP growth for 2008 will be 1.4%, decelerating to a 0.5% rate in 2009. In 2010, real GDP will grow by 2.2%, still below the trend rate of 3.0%.
For 2008, consumption growth will be 1.0%, before moderating to 0.3% in 2009. It will rise by 1.9% in 2010. Durable goods consumption will decline by 2.8% in 2008 and 3.7% in 2009, before experiencing a sharp 3.9% rise in 2010.
For the year 2008, oil prices will average $106.7 per barrel, before moderating to just below $90.0 per barrel in 2009 and 2010.
Housing starts will average 0.949 million units in 2008 and will drop to 0.900 million units in 2009. Housing starts will rise to 1.209 million units in 2010.
For 2008, the inflation rate will average 4.3% but will moderate sharply to a 2.2% rate in 2009. In 2010, the inflation rate will average 2.0%. Meanwhile, the core CPI inflation rate will average 2.3% in 2008 and 2009, before rising mildly to 2.4% in 2010.
The unemployment rate will average 5.5% in 2008, but it will rise to 6.3% in 2009, dropping slightly to 6.2% in 2010.

Georgia and Atlanta—Georgia’s Boat Tied to National Woes

Georgia’s job picture continues to look bleak despite gains in education, healthcare, and government jobs during the second quarter of 2008. According to Dhawan, the problem stems from the housing downturn which has had a negative ripple effect throughout Georgia’s economy. Additionally, high gas prices and the credit crisis have added to the area’s problems and, like the national economy, Georgia’s growth prospects will not return until 2010.

In his Forecast of Georgia and Atlanta, Dhawan says that Georgia’s residential and commercial real estate sector continues to show signs of weakness which not only impacts construction jobs but has spread to supporting sector jobs as well. While future construction growth depends on what the economy’s growth warrants, it is also a function of credit market conditions.

“Ultimately, it is the willingness of the banking sector to make new construction loans that makes future construction activity possible. The ability to finance construction in turn depends on the quality of the bank’s balance sheet,” says Dhawan. “Unfortunately, Georgia has been hard hit by the credit crisis with a proportion of unprofitable lending institutions currently at 25%, almost double the national rate.”

In addition, high gas prices are negatively impacting consumer spending and are wreaking havoc with Delta, the area’s largest employer, which has already announced major cutbacks in routes and jobs.

Net-net, says Dhawan, the prognosis for Georgia’s growth in the coming quarters is bleak. The question is when can the area expect to see job growth return?

“I expect job losses to continue at a somewhat heavy rate for the rest of the year and anticipate a net loss of 35,300 jobs for calendar year 2008,” he said. “In 2009, we’ll see the decline slow to 2,600 losses before the recovery strengthens in 2010 where we can expect to see 61,700 new jobs.”

However, he cautions, “Like the national picture, this forecast assumes that oil prices moderate below $100 per barrel by late October and stay low.”

Highlights from the Economic Forecasting Center's Local Report:
For calendar year 2008, we anticipate 35,300 net losses (14,600 premium jobs). In 2009, 13,900 job losses are expected in the first half of the year, followed by 11,300 job gains in the second half, making for 2,600 job losses (11,000 premium jobs losses). The recovery will strengthen in 2010 when 61,700 jobs will be created (12,000 premium jobs).

Atlanta’s employment growth will remain negative for the remainder of 2008 for a total loss of 20,600 jobs (8,000 premium job losses). For calendar year 2009, Atlanta will post 3,900 job gains, but 4,100 premium job losses. The recovery will strengthen in 2010 when 44,200 jobs are created (10,200 premium job gains).

Atlanta's total housing permits will plummet by posting a 52.1% drop in 2008 after a 34.6% decline in 2007. Permit activity will again decrease at a slower rate of 5.0% in 2009 but will inch up in 2010, posting an 18.4% increase.

Most MSAs in Georgia will exhibit slower employment growth in 2008, with Albany, Columbus, Dalton, and Macon observing job losses. Only Savannah, Gainesville and Warner Robins will see any increase in employment in 2008, though increases will average below 1.0%.

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Sallie Mae Originates Loans under Federal Solution

BUSINESS WIRE --SLM Corporation (NYSE:SLM), commonly known as Sallie Mae, today issued the following statement regarding implementation of the U.S. Department of Education’s loan participation purchase program authorized under the “Ensuring Continued Access to Student Loans Act of 2008”:

We are the first company to receive funds under the U.S. Department of Education’s new program that guarantees there will not be a shortage of federal student loans this year. Sallie Mae is actively reaching out to students and colleges to make sure that every student at every college has access to federal student loans.

We also stand ready to continue working with Congress and the Administration to bolster the long-term health of the student lending program.

Sallie Mae was approved to participate in this program on Aug. 14. An initial funding request was made on Aug. 15, and the company received funding in three business days. Sallie Mae estimates that it will originate $20 billion or more in federal Stafford and PLUS loans eligible for participation in the Department of Education’s program this academic year.

SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation’s leading provider of saving- and paying-for-college programs. The company manages nearly $172 billion in education loans and serves 10 million student and parent customers. Through its Upromise affiliates, the company also manages more than $19 billion in 529 college-savings plans, and is a major, private source of college funding contributions in America with 9 million members and $425 million in member rewards. Sallie Mae and its subsidiaries offer debt management services as well as business and technical products to a range of business clients, including higher education institutions, student loan guarantors and state and federal agencies. More information is available at www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

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