December 14,  2005

            LANSING – Attorney General Mike Cox today applauded the Michigan Senate's passage of legislation sponsored by Sen. Patricia Birkholz (R – Saugatuck Twp.), and Sen. Tony Stamas (R – Midland) to enhance laws regarding criminal background checks for prospective residential care facility employees. The legislation comes after Cox announced the results of two studies conducted by his office that revealed almost 10% of the employees caring for approximately 100,000 Michigan seniors and vulnerable adults have criminal backgrounds.

            "I commend the Senate for its overwhelming support of this important legislation and encourage the House and the Governor to do the same," said Cox.  "This legislation is critical in protecting our most vulnerable citizens.  I will do everything in my power to safeguard the residents in these facilities from preventable risk."

            The legislation requires Michigan’s almost 5,000 residential care facilities to conduct criminal background checks of all new employees and creates a database of residential care facility employees to continually monitor future criminal convictions. The legislation also increases the criminal sanctions for failure to comply.

            After Cox’s Health Care Fraud Division uncovered that 25% of residential care facility employees committing crimes against residents since 2002 had past criminal convictions, he commissioned the statewide studies. Of the more than 5,500 Certified Nurse’s Aides (CNAs) studied, 9% had a total of 836 outstanding criminal warrants and 3%, or 170, had past criminal convictions. These results were confirmed when the backgrounds of entire employee populations  at four nursing homes across Michigan revealed 58 of 618 employees, or more than 9%, had 101 outstanding warrants, and that 68, or 11%, of the staffs had past criminal convictions.

            "Michigan's population is growing older," said Cox.  "That is why this common sense legislation is needed now more than ever."

            Many of Cox's proposals were included in the legislation:

           • Expansion of the crimes covered by the statutes to disqualify not only applicants with past convictions for fraud or theft against a vulnerable adult victim, but also convictions for these crimes regardless of the victim’s status.

            • Inclusion of convictions for misdemeanor drug offenses, as well as felony convictions, in light of the numerous cases that involve employees stealing patients’ narcotics.

            • Expansion of the criminal background check requirement beyond staff providing direct care to residents to all employees with direct access to the residents and the residents' personal information.

            • Strengthening of the criminal sanctions to make them proportionate to the risk these individuals pose to vulnerable adults. Failure to comply with requirements of the criminal background check statutes would become a felony punishable by four years in prison and $50,000 in fines.

            Cox’s has shared the report’s findings with each of the State’s residential care facilities. In addition, Cox has sent an Abuse Alert to nursing homes statewide informing them of the legal requirements and has notified local authorities about nursing home employees with outstanding warrants.

            The Attorney General's Health Care Fraud Division is one of 49 federally certified Medicaid Fraud Control Units. Medicaid fraud investigations and prosecutions include false billings, unlawful delivery of controlled substances, practicing medicine without a license, kickbacks, and bribery schemes. Abuse and neglect investigations and prosecutions include physical assault, criminal sexual conduct, identity theft, theft of residents' property and funds, and harmful neglect in Michigan residential care facilities. The division also initiates civil actions, including asset forfeiture and claims for Medicaid overpayments.

            In conducting its activities, the division works closely with other agencies such as the Federal Bureau of Investigation, Drug Enforcement Administration, Department of Justice, Michigan State Police, state regulatory agencies, local law enforcement agencies, and private health insurance companies.  

            To report Medicaid provider fraud or identity theft/patient abuse in a resident care facility, call the Attorney General’s 24-hour Hotline at 800 24-ABUSE (800-242-2873); e-mail hcf@michigan.gov; or visit the Attorney General’s Web site at www.michigan.gov/ag.

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