Continental Medical Systems would like to set the record straight on the matters addressed in your article, "Feds probe Continental" (Oct. 31, p. 4).
On Oct. 27, Continental announced that many of its facilities and office locations were visited or contacted by U.S. Justice Department officials for the purpose of interviewing certain Continental employees. Thus far, to our knowledge, the Justice Department has done nothing more than make inquiries, and we have expressed a willingness to cooperate.
Continental issued a press release to alert its investors, employees and business partners about the inquiries in advance of possible news releases and rumors that can occur from such activity.
Your article makes reference to a "run-in" with federal authorities over Medicare billings by our Braintree Hospital. To our knowledge, the Braintree matter is not related in any way to the recent Justice Department inquiries. The problem referred to in the article occurred in 1991 as a result of billings made by a third-party agency. When our hospital discovered the problems, the hospital immediately reported the matter to Medicare, cooperated in an audit of the billing agency's work, refunded improper billings and agreed to pay a fine of $700,000. The $1.6 million reported in your article included the fine and the improper billings, which were voluntarily returned. Braintree has filed suit against the billing agency to recover its damages.
Also, your article suggests, "The NME (National Medical Enterprises) investigation began in a similar manner in August 1993." Nobody familiar with the facts could fairly compare the NME experience to the inquiries made at our facilities.
Continental's management has the utmost confidence in the integrity of its business practices and is prepared to respond to the Justice Department inquiries as soon as possible.
David G. Nation
Continental Medical Systems