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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (Sept. 20, 1984)
Thursday, Septcm&sr 20, 1C34
Sales between subsidiaries rack tip exc
a. jblhl o pupa uiiiik.r: I 1 1 1 f i y i j rr.ir?
uditora for the federal De
partment ofHimlth and Ifn.
roan Servfrr! hnv Hfmw.
ed cvJdcr.ee of "profiteering" by
ths nation's largest provider life
euttdr.bg kidney dialysis treat-
Hie evidence was gathered after
the firm, N&tioztd Medical Care
Inc., cf W&Itham, Mass., sought
an exemption late last year from
federal rules prohibiting sales
practices that unnecessarily in
flate the cost of health care.
T2:c story in told in a stffl-
and Joseph Spear
Care's clinks an average of $21.93
less for dialysis machine filters
than it charged unrelated clinics.
The auditors disagreed. They
found that clinics within the cor
porate family were chargsd any
where from $33.03 to $J3 more
per filter. That led to m excess
protof $1.3 million.
The company claimed its
clinics paid only 84 cents more
for blood-line sets from its Erika
subsidiary. The auditors found
that the markup averaged $3.45,
for an excess profit of $271,603
on that item.
In his letter to the 10, McFeeley
called the audit "a colossal waste
of tax money."
Covert Aids In what may be
its first venture into covert mil
itary operations since prepara
tions for the attack on Pearl Har
bor 43 ycar3 ago, the Japanese
government has taken a modest
part in the guerrilla war against
the Sandinista regime in Nicara
gua. A high-ranking contra leader
in the Honduran capital of Tegu
cigalpa told our reporter Jon Lee military instructors had been sent
Anderson the details. ' by their goverment to train corn-
He said that from February to mandos for missions against the
June of this year six Japanese Sandinista regime in Nicaragua.
secret report by the 11H3 inspector
general The auditors found that
one of National Medical Care's
subsidiaries, Erika Inc., sold dial
ysis supplies to another subsi
diary, the Artificial Kidney Cen
ter ofQueens, N.Y., at prices rang
ing from 22 percent to 56 percent
above the going rate.
As a result, according to the
auditors, Erika made an excess
proSt of $181,671 on that 1977 deal
alone. The IG report also found
that during 1981, Erika netted
$4.3 million in excess profits from
sales to its subsidiaries.
National Medical Care Vice
President Timothy I. McFeeley,
meanwhile, urged HHS not to
release the information gathered
by the inspector general His con
cerns are easy to understand. For
Th rnmnanv rlimaA that
Erika charged National Medical L
A GrbOan l&ctum
for Urn -vnivmziy cemrsm$hf
by Jks Stm-ti H&m&mM CSS,
1 i! J "I Vy
Thursday Sp&iiw 20, at 7-30 pro
tMmska IMshn City Campus
ff'&rsa chsck tha bulisSst boards
for room hmtkmj ,
AM arm w&km
pc?istd by tha Unbmslty otT&stms&a (Swisttkot Scienca Qr&ui&ilim.
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