Was candidate Rick Scott involved in U.S. healthcare scam?

Rick Scott's opponents for governor are telling reporters to essentially fluff off a new poll Thursday that shows the former Columbia/HCA hospital CEO beating both Attorney General Bill McCollum in the Republican primary for governor and Chief Financial Officer Alex Sink in a hypothetical November match-up.

Focus on the fraud, they say. The fraud. The fraud.

``Rick Scott has spent $15 million in half as many weeks to fund his public image repair squad's pricey and misleading paid media campaign,'' McCollum spokesman Kristy Campbell said Thursday. ``It's no surprise he has skyrocketed in the polls since Floridians are just beginning to learn about his questionable past. His lead will evaporate when Floridians learn Rick Scott oversaw the most massive Medicare fraud scheme in American history.''

Democrats added their own e-mail titled ``Fraud is not a mistake,'' along with a 2 minute 40 second Web video called Slick Rick .

``Rick Scott may think that his millions of dollars will allow him to avoid answering hard questions about his record as CEO of Columbia/HCA . . . but with your help we will make sure he is held accountable,'' said the Florida Democratic Party's Eric Jotkoff.

The fraud question is a natural for PolitiFact Florida.

Here we'll focus on whether Scott's old company, Columbia/HCA, committed fraud, and also explain Scott's role with the company, his part in a federal investigation and the outcomes of the federal probe. To borrow a line from Scott's television ads -- Let's get to work.

COMPANY HISTORY

Scott started what was first Columbia in the spring of 1987, purchasing two El Paso, Texas, hospitals. He quickly grew the company by purchasing more hospitals. A hospital network created efficiencies. Efficiencies created profits.

In 1994, Scott's Columbia purchased Tennessee-headquartered HCA and its 100 hospitals, and merged the companies. When Scott resigned as CEO in 1997, Columbia/HCA had grown to more than 340 hospitals, 135 surgery centers and 550 home health locations in 37 states and two foreign countries, Scott's campaign says. The company employed more than 285,000 people.

Now about Scott's departure in 1997. That year, federal agents went public with an investigation into the company, first seizing records from four El Paso-area hospitals and then expanding across the country. In time it became apparent that the investigation focused on whether Columbia/HCA bilked Medicare and Medicaid.

Scott resigned as CEO in July 1997, less than four months after the inquiry became public and before the depth of the investigation became clear. Company executives said that had Scott remained CEO, the entire chain could have been in jeopardy.

At issue, Scott says, is that he wanted to fight the federal government's accusations. The corporate board of the publicly traded company wanted to settle. And settle Columbia/HCA did.

In December 2000, the U.S. Justice Department announced what it called the largest government fraud settlement in U.S. history when Columbia/HCA agreed to pay $840 million in criminal fines and civil damages and penalties.

Among the revelations from the 2000 settlement, all of which apply to the time Scott was CEO:

• Columbia billed Medicare, Medicaid and other federal programs for tests that were not necessary or ordered by physicians.

• The company attached false diagnosis codes to patient records to increase reimbursement to the hospitals.

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