Dec 9, 2008 4:40 pm US/Central
Alleged Children's Memorial Hospital Shakedown
Possibility That Funding Would Have Been Revoked If Governor Didn't Receive Contribution From CEO
CHICAGO (CBS) ―
The criminal complaint against Gov. Rod Blagojevich and his chief of staff John Harris is an incredible document, alleging in 76 pages years of pay- to- play deals involving the governor.
The U.S. Attorney's office highlighted several deals over just the last two months to show how desperate the governor was to raise money.
CBS 2 Investigator Pam Zekman reports one of the most stunning charges involves Children's Memorial Hospital.
According to the complaint, the governor wanted to raise $2.5 million before the end of the year. One way was to extract campaign contributions in exchange for providing state funding to pay for medical care for needy children.
Pediatric specialists at hospitals like Children's Memorial are paid 33 cents on every dollar it costs to provide care to kids on Medicaid. Like other hospitals it wanted to get $8 million in state funding to adequately reimburse the doctors.
But the federal government charged Tuesday that to sign off on that, the governor wanted something for himself.
"He also indicated privately that what he wanted to get was a $50,000 private contribution from the chief executive of that hospital," U.S. Attorney Patrick Fitzgerald said.
But the Children's Memorial executive did not return phone calls from a Blagojevich fundraiser, according to an FBI affidavit filed with the case. The governor had the following tape-recorded conversation with one of his deputies on November 12:
Blagojevich: "The pediatric doctors, the reimbursement. Has that gone out yet or is that still on hold?
Deputy Governor A: The rate increase?
Blagojevich: Yeah
Deputy Governor A: It's January 1
Blagojevich: And we have total discretion over it?
Deputy Governor A: Yep.
Blagojevich: We could pull it back if we needed to- budgetary concerns- right?
Deputy Governor A: We sure could. Yep
Blagojevich: OK. That's good to know."
The governor had apparently not released that money as of his arrest Tuesday.
"There is a hospital, Children's Memorial believing its getting 8 million but its CEO has not coughed up a campaign contribution. And the thought that money may get pulled back from Children's Memorial is something you cannot abide," Fitzgerald said.
In a written statement, the hospital said it is very disappointed that the needed funding was tied to an alleged pay- to- play scheme.
Neither Children's nor any of its personnel participated, and the hospital said it is cooperating with federal authorities.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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