Before its guilty plea and settlement with the government, the hospital company made a series of denials and accusations of unfair treatment:
"As recent media reports have stated, certain governmental authorities are conducting investigations into allegations that some PIA facilities may have engaged in improper practices....Management believes, however, that there will be no material adverse impact on the company's consolidated earnings or financial condition....The effects of negative publicity should decline over time."-Then-Chairman and Chief Executive Officer Richard Eamer's quarterly letter to shareholders, Sept. 25, 1991.
"It is my personal opinion the state of Texas has a vendetta against people giving psychiatric care."-Mr. Eamer, responding to a lawsuit about alleged abuses at NME hospitals filed by the Texas attorney general in 1991. About the state's allegations of fraud, he said, "They don't have the vaguest idea what they're talking about."
"We've been roasted with this seemingly unending string of patient complaints. Patients can say anything. And because of the nature of the confidentiality rules, we can't respond."-NME spokesman David Olson, November 1991.
"There is nothing sinister or underhanded in these conversations and these contacts."-Robert Constantine, senior vice president of NME's psychiatric hospital division, testifying before a Texas Senate hearing in January 1992 about working with physicians and other referral sources.
"We have repeatedly stated that no conspiracy existed, and the judge agreed."-NME General Counsel Marcus Powers, on May 24, 1993, in a California malpractice case in which plaintiffs contended that the company conspired to improperly admit patients to NME psychiatric hospitals.
Source: News reports, company documents