Texas VA Run Like A “Crime Syndicate” Claims Whistleblower

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

“For lack of a better term, you’ve got an organized crime syndicate,” a whistleblower who works in the Texas VA told The Daily Beast. “People up on top are suddenly afraid they may actually be prosecuted and they’re pressuring the little guys down below to cover it all up.”

What’s worse, the documents show the wrongdoing going unpunished for years, even after it was repeatedly reported to local and national VA authorities. That indicates a new troubling angle to the VA scandal: that the much touted investigations may be incapable of finding violations that are hiding in plain sight.  


– From the excellent Daily Beast article published yesterday: Exclusive: Texas VA Run Like a ‘Crime Syndicate,’ Whistleblower Says

Unless you’ve been living under a rock for the past week or so, you are probably well aware of the latest in a consistent stream of scandals that have rocked the Obama Administration since he took office over five years ago. Yes, I am referring to the Veterans Affairs (VA) scandal, and while you might think you have read enough on the topic, the following article is very important.

It tells the tale of a VA hospital in Texas that had institutionalized the practice of manipulating hospital wait lists many years ago. For example, all the way back in 2011, the VA’s inspector general investigated the Central Texas health-care system in response to complaints received. Despite finding that such manipulation was rampant, not a single VA official was disciplined. As you might expect, the practice continued and the hospital highlighted in this article actually received an award in the face of an OIG investigation!

As such, this story has much wider implications than the obvious one. It demonstrates why corruption, fraud and white-collar crime is metastasizing throughout the land. The rich and powerful have recognized the rule of law has been completely suspended when it comes to them. They realize that no matter what they do, the worst thing that will happen is a slap on the wrist. So they continue to eagerly commit crimes at every conceivable opportunity. Of course, it’s the crimes of the rich and powerful that affect the largest number of people, not the impoverished youth slinging a dime bag on some ghetto corner. But which one is getting locked up?

As I have said time and time again, this suspension of the rule of law for the so-called “elites” is the most cancerous thing pervading American society at the moment. Dealing with this will go a long way to solving a lot of other problems.

From The Daily Beast: 

Last week, President Obama pledged to address allegations of corruption and dangerous inefficiencies in the veterans’ health-care system. But before the president could deliver on his pledge, the scandal has spread even further. New whistleblower testimony and internal documents implicate an award-winning VA hospital in Texas in widespread wrongdoing—and what appears to be systemic fraud.

 

Emails and VA memos obtained exclusively by The Daily Beast provide what is among the most comprehensive accounts yet of how high-level VA hospital employees conspired to game the system. It shows not only how they manipulated hospital wait lists but why—to cover up the weeks and months veterans spent waiting for needed medical care. If those lag times had been revealed, it would have threatened the executives’ bonus pay.

 

What’s worse, the documents show the wrongdoing going unpunished for years, even after it was repeatedly reported to local and national VA authorities. That indicates a new troubling angle to the VA scandal: that the much touted investigations may be incapable of finding violations that are hiding in plain sight. 

 

For lack of a better term, you’ve got an organized crime syndicate,” a whistleblower who works in the Texas VA told The Daily Beast. “People up on top are suddenly afraid they may actually be prosecuted and they’re pressuring the little guys down below to cover it all up.”

 

The current VA scandal broke in Phoenix last month, when a former doctor at a VA hospital there became the first whistleblower to gain national attention. The doctor’s allegations of falsified appointments—and veterans dying while they waited for treatment—unleashed a wave of similar claims from VA employees nationwide. In Cheyenne, Wyoming, Chicago, and Albuquerque, more VA whistleblowers came forward claiming that the same fraudulent scheduling was being used in the hospitals where they worked. At last count, the VA inspector general’s investigation had expanded to 26 separate facilities.

 

Though VA hospitals may be struggling with increasing patient loads and inadequate resources—including too few medical providers—they are punished for acknowledging those problems. The VA’s current system appears to reward executives’ accounting tricks that mask deep structural issues and impede real solutions.

Sounds a lot like our entire financial system.

According to Spann, Dr. Gordon Vincent, chief of radiology at Olin E. Teague Veterans Medical Center in Temple, Texas, didn’t just break VA policy by manipulating veterans’ appointments himself. He ordered VA employees across central Texas to engage in the same fraudulent practice.

 

The VA said it investigated Spann’s charges, and, after, finding nothing to substantiate the claims, cleared Vincent and the Texas VA.

We arrest someone every two seconds in America, largely for non-violent drug possession charges, yet the real criminals roam free to feast on society with zero repercussions.

But documents obtained by The Daily Beast appear to show Dr. Vincent doing precisely what Spann accused him of—the activities the VA said it could not substantiate. 

 

By changing the desired date, Dr. Vincent, a VA section chief, was violating well-established scheduling rules detailed in an official VA memo from April 2010 and re-emphasized in a separate policy directive from June of that year. But forging veterans’ desired dates seems to have been widely considered a low-risk, high-reward form of cheating. Changing the dates made it seem as if patients were being seen within the prescribed 14-day window, which reflected well on the hospital and put its staff in line for bonuses.

 

For the veterans seeking care, however, it had no such benefits.

Anyone caught doing this to veterans should be locked up for decades.

The document described above is only one piece of evidence in a larger docket against Vincent, which is itself part of a larger record of corruption in the VA that extends far beyond Vincent or any one individual. In 2011, the VA’s inspector general investigated the Central Texas health-care system in response to complaints it had received. The inspector general found that manipulated appointments were widespread and hid significant delays, but the report doesn’t seem to have led to a single VA official being disciplined or officially held responsible for gaming the system.

 

I saw the press release saying it wasn’t Vincent or any of the executives, that the schedulers were entering the desired dates incorrectly but they were not directed to do so by management. That’s just not true and we’ve got mountains of evidence proving it,” the clinician told The Daily Beast. 

 

“Every doctor, nurse, and clerk in the hospital knows it’s true, but the VA’s investigative team wasn’t able to find any evidence,” the clinician said. “They didn’t interview any of us or really try to find out what was going on. This was reported in 2011 and it’s still not fixed today.”

 

The Central Texas management parroted the inspector general’s findings when the hospital applied for a “Robert W. Carey Performance Excellence Award.” According to the clinician, in the hospitals award application they actually listed as an accomplishment that they had found “front line staff” incorrectly using desired dates in the scheduling process and fixed the problem. It must have been convincing. Despite the OIG investigation, the hospital won the award.

 

What does it say that a VA hospital with this many complaints has not only avoided an accounting—but actually received awards?

It tells you all you need to know about the state of affairs across virtually all institutions and multi-national corporations. As I have said many times before, the primary driver of U.S. GDP at the moment is corruption, fraud and criminality.

Full article here.




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VID: Matt Welch Talks Future of Gaming with Spark Unlimited’s Craig Allen & Game Designer Tracy Fullerton

“Matt Welch Talks Video
Game Nation with Spark Unlimited’s Craig Allen and USC Game
Designer Tracy Fullerton” is the latest video from Reason TV.
Watch above or click on the link below for video, full text,
supporting links, downloadable versions, and more Reason TV
clips.

View this article.

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“Pent-Up” Pending Home Sales Demand Missing; Down 9.4% YoY

But it’s the weather… nope… NAR blames excess inventory as giving people too much choice and slowing their purchasing decisions for the notable miss on both MoM and YoY sales. This is the 7th month in a row of declining YoY sales. The 0.4% rise MoM missed expectations of 1.0% as the pent-up demand from a cold winter appears to be missing in action. Of Course NAR is optimistic (but even they are cautious), an uptrend in closed sales is expected, although some months will encounter a modest setback.”

 

7th month in a row of YoY declines…

 

NAR explains…

Lawrence Yun, NAR chief economist, expects a gradual uptrend in home sales. “Higher inventory levels are giving buyers more choices, and a slight decline in mortgage interest rates this spring is raising prospective home buyers’ confidence,” he said. “An uptrend in closed sales is expected, although some months will encounter a modest setback.”

Charts: Bloomberg




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Consumer Comfort Plunges To 6-Month Lows

Despite record highs in stock markets and talking-heads explaining that a terrible Q1 GDP print is nothing to worry about, Bloomberg’s Consumer Comfort index collapsed to its lowest level in 6 months as ‘Buying Climate’ collapsed and economic expectations plunged from 48 to 42.5 (7-month lows). The Fed won’t be happy… need S&P 2,200 for animal spirits to come back again…

 

 

And Buying Climate has plunged…

 

Charts: Bloomberg




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Goldman Boosts Q2 GDP Forecast Due To Weaker Than Expected Q1 GDP

Today is the day when economists weathermen everywhere jump the shark. Here’s Goldman’s Jan Hatzius.

BOTTOM LINE: Q1 GDP was revised lower than expected, mainly due to a larger drag from inventories. Initial jobless claims fell more than expected, while continuing claims declined to a new post-recession low. Because of weaker inventory investment in Q1, we increased our Q2 GDP tracking estimate by two-tenths to 3.9%.

 

Main Points:

 

GDP growth in Q1 was revised to -1.0% (vs. consensus -0.5%), from +0.1% initially reported. Almost all of the net revision was due to a larger drag from inventory investment, which contributed -1 percentage point (pp) to the revision. Inventory investment is now estimated to have reduced GDP growth by 1.6 pp in Q1. Net exports (-0.1pp) and government (-0.1pp) also subtracted, although business fixed investment (+0.1pp) and personal consumption expenditures (+0.1pp) provided partial offsets. Real final sales—GDP excluding inventory investment—was revised down only one-tenth to +0.6%. Real gross domestic income (GDI) for Q1—first reported in today’s report—fell 2.3%, the worst performance since the recession. The core PCE price index rose at a 1.2% annualized rate in Q1, one-tenth lower than initially reported.

 

Because of weaker inventory investment in Q1, we increased our Q2 GDP tracking estimate by two-tenths to 3.9%.

Why are you still reading? You should be BTFATH – after all corporations have billions more in stocks to buyback!




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Excluding Obamacare, US Economy Contracted By 2% In The First Quarter

As if the official news that the US economy is just one quarter away from an official recession (and with just one month left in the second quarter that inventory restocking better be progressing at an epic pace) but don’t worry – supposedly harsh weather somehow managed to wipe out $100 billion in economic growth from the initial forecast for Q1 GDP – here is some even worse news: if one excludes the artificial stimulus to the US economy generated from the Obamacare Q1 taxpayer-subsidized scramble, which resulted in a record surge in Healthcare services spending of $40 billion in the quarter, Q1 GDP would have contracted not by 1% but by 2%!

The history of healthcare spending’s contribution to GDP. The outlier needs no highlighting:

And here is the breakdown of overall Q1 GDP and just the contribution from healthcare. In other words as the “favorable boost” to the economy from this most epic instance of capital misallocation fades, expect the drag to GDP to be even more acute, and will almost certainly offset the benefits of “unharsh weather.”

Source: Dept of Commerce




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S&P 500 Pushes To All Time Highs On First Economic Contraction In Three Years

What do you do when GDP prints twice as bad as expected… buy stawks! And so it is that -1.0% GDP print for Q1 has been greeted with a buying drive in S&P 500 futures to lift it back near all-time record highs this morning. Gold, silver, and the USD are also rising.. and bond yields are rising very modestly.

 

S&P is up…

 

But the Nasdaq is leading…

 

Leaving the S&P 60 points rich to bonds…

 

And here’s why everyone’s bulled up…

 

Charts: Bloomberg




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A.M. Links: Edward Snowden Speaks, V.A. Hospital ‘An Organized Crime Syndicate,’ Pro-Russian Forces Shoot Down Ukrainian Army Helicopter

  • Edward Snowden sat down for a wide-ranging
    interview
    with NBC News. The U.S. government has “no idea what
    documents were taken,” he said. Meanwhile, Secretary of State John
    Kerry said Snowden
    should
    “man up and come back to the United States.”
  • According to a whistleblower who works at a Veterans Affairs
    hospital in Texas, the place
    is run
    like “an organized crime syndicate…. People up on top
    are suddenly afraid they may actually be prosecuted and they’re
    pressuring the little guys down below to cover it all up.” As the
    V.A. scandal grows, calls are getting louder for embattled Veterans
    Affairs chief Eric Shinseki
    to resign
    .
  • Pro-Russian forces near the eastern Ukraine town of Slaviansk

    shot down
    a Ukrainian army helicopter, killing 14.
  • The U.S. Court of Appeals for the 1st Circuit
    has recognized
    a First Amendment right to film the police in
    public.
  • Air pollution levels in London
    may be worse
    than those in Beijing.
  • A new study finds that 30
    percent
    of the human population is overweight.

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US Economy Shrank By 1% In The First Quarter: First Contraction Since 2011

Weather 1 – Quantitative Easing 0.

Spot on the chart below just how high the culmination of over $1 trillion in QE3 proceeds “pushed” the US economy.

Joking aside, while the realization that nobody can fight the Fed except a cold weather front, is quite profound, in the first quarter GDP “grew” by a revised -1.0%, down from the +0.1% first estimate, and well below the -0.5%  expected, confirming that while economists may suck as economists, they are absolutely horrible as weathermen. This was the worst print since the -1.3% recorded in Q1 2011.

Bottom line: for whatever reason, in Q1 the US economy contracted not only for the first time in three years, but at the fastest pace since Q1 of 2011. It probably snowed then too.

The breakdown by components is as follows:

Some highlights:

  • Personal consumption was largely unchanged at 2.09% from 2.04% in the first estimate and down from 2.22% in Q4. Considering the US consumer savings rate has tumbled to post crisis lows at the end of Q1, don’t expect much upside from this number.
  • Fixed investment also was largely unchanged, subtracting another 0.36% from growth, a little less than the -0.44% in the first estimate and well below the 0.43% contribution in Q4.
  • Net trade, or the combination of exports and imports, declined from
    -0.83% to -0.95%, far below the positive boost of 0.99% in Q4.
  • The biggest hit was in the change in private inventories, which tumbled from -0.57% in the first revision to a whopping -1.62%: the biggest contraction in the series since the revised -2.0% print recorded in Q4 2012.
  • Finally, government subtracted another -0.15% from Q1 growth, more than the -0.09% initially expected.

So there you have the priced to perfection New Normal growth (inclusive of “harsh weather”, which obviously has to be excluded for non-GAAP GDP purposes), which also now means that in the rest of the year quarterly GDP miraculously has to grow at just shy of 5% in the second half for the Fed to hit the “central tendency” target of 2.8%-3.0%.

And now we await for stocks to soar on this latest empirical proof that central planning does not work for anyone but the 1%.




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Initial Claims Drop Near Cycle Low “As Good As It Gets” Levels

The flip-flopping noise of the initial claims data continues as last week’s spike and miss is rebounded into this week’s beat and drop. At 300k – down 27k from last week – initial claims are at their lowest since May 2007 – practically as good as it gets. Continuing claims continue to fall – now at 2.63 million – to the lowest in the cycle and lowest since Nov 2007. Continuing claims are falling at the fatest pace since 2010.

 

Initial claims near cycle lows…

 

As continuing claims plunges to cycle lows at the fastest pace since 2010…

 

Chart: Bloomberg




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