Trends in Long-Term Care - U.S. Senate Special Committee on Aging

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Dr. BERGMAN. No; but Stanley and Meyer are. They are my sons.
Senator Moss. Now, there was a prelim<strong>in</strong>ary audit of the Towers
Nurs<strong>in</strong>g Home which was released by the New York State Welfare
Inspector General's Office late last year. There were disbursements,
each <strong>in</strong> the amount of $10,000 or more, total<strong>in</strong>g $1,895,535.46, shown <strong>in</strong>
the cash disbursements book for the 4-year period, but which are still
outstand<strong>in</strong>g.
Do you know anyth<strong>in</strong>g about that?
Dr. BERGMNAN-. Sir, I don't know accurately, but what I heard, those
amounts, they were exchanges. It was not an expense charged to
medicaid. It was simply loans and exchanges, because the Towers
always ran <strong>in</strong> the red, so occasionally we had to put <strong>in</strong> moneys for
salaries, and stuff like that, so there were only loans and exchanges,
but it was not listed as an expense at all.
Senator Moss. It is just that they were exchanges made by supervisory
personnel?
Dr. BERGMAN. That is right. Either by us, or by some associates.
This can be proven, Senator, by the accountant.
Senator Moss. And there were over $2 million worth of checks, each
for the amount of $10,000 or more, which have cleared the bank for the
4-year period, but which are not entered at all <strong>in</strong> the home's cash disbursements
book.
Dr. BERGMAN. Because aga<strong>in</strong> they were loans and exchanges, I was
told after I returned.
Senator Moss. Well, there does not appear to be any canceled checks.
Do you know what has become of themn?
Dr. BERGMAN. I don't know. You would have to ask the accountant.
Senator Moss. Well, you have brought <strong>in</strong> your books, and I appreciate
that. and we will look at them rather carefully.
Dr. BERGMAN. Yes.
Mr. LEWIN. Mr. Chairman, I understand the chairman's cautionary
<strong>in</strong>structions. I do not want to be <strong>in</strong> a position of <strong>in</strong>terject<strong>in</strong>g myself.
I th<strong>in</strong>k with regard to this matter though, I th<strong>in</strong>k it only fair to
po<strong>in</strong>t out that there was no suggestion whatsoever, even the State welfare
<strong>in</strong>spector general's report, that that had anyth<strong>in</strong>g at all to do
with medicare payments.
The loan exchange account <strong>in</strong> a nurs<strong>in</strong>g home which is essentially
a family bus<strong>in</strong>ess, is someth<strong>in</strong>g the family may do or use as it wishes.
It does not affect medicaid reimbursements <strong>in</strong> any way. It is like
go<strong>in</strong>g to the candy store, like say<strong>in</strong>g I lend and borrow to the family
candy store, and I take it out.
Only to the extent it affects medicaid reimbursements are concerned,
that is what is with<strong>in</strong> this committee's concern, and that is what is
with<strong>in</strong> the concern of any law enforcement authority.
Senator Moss. You are correct.
Our concern has to do with medicaid reimbursements, and that is
the reason we are try<strong>in</strong>g to trace out some of these th<strong>in</strong>gs, to see if it
does affect the rate of reimbursement under medicaid.
Mr. LEWI-x. Let me say additionally, that that report I th<strong>in</strong>k was
as a result of an unauthorized prelim<strong>in</strong>ary disclosure by the welfare
<strong>in</strong>spector general.
It was subject obviously to all of the risks of leaks and prelim<strong>in</strong>ary
disclosure, precisely the reason when we submitted our records, we