Alleged Misconduct by International Medical Centers, Inc. Officials

Gao ID: T-OSI-88-1 December 15, 1987

In response to a congressional request, GAO discussed the results of its investigation into allegations of misconduct against officials of a Florida-based health maintenance organization. GAO found that: (1) some senior officials of the firm were indicted on various charges, including conspiracy, questionable payments, obstruction of justice, wiretapping, and bribery; (2) the Health Care Financing Administration terminated the firm's Medicare contract because of its inability to meet enrollment requirements; (3) the firm's administrative costs were a contributing factor to its collapse; (4) the firm employed numerous former senior officials of the Department of Health and Human Services as consultants, lobbyists or full-time employees; (5) the firm's president has previously been jailed for failing to file income tax returns, is under indictment, is a fugitive, and is believed to have fled the country; and (6) another health firm acquired the firm's medical plan and assets.

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