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New cloud over Columbia
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April 1, 1998: 9:16 a.m. ET
SEC begins probe to see if hospital chain violated federal securities laws
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NEW YORK (CNNfn) - Columbia/HCA Healthcare Corp., already under investigation for alleged Medicare fraud, is now receiving scrutiny for alleged violations of federal securities laws.
Columbia acknowledged the investigations, which are being conducted by the Securities and Exchange Commission, within its annual financial report to the SEC, the Wall Street Journal said Wednesday.
"The company understands that the investigation includes the antifraud, periodic reporting and internal accounting control provisions of federal securities laws," the filing said.
"There is an SEC investigation which was not unexpected," said Victor Campbell, a spokesman Columbia/HCA, the Nashville, Tenn.-based firm which is the largest for-profit hospital chain in the country.
Campbell said that the company was notified early in 1998 about the probe and that it was fully cooperating with investigators.
The company did not reveal further details of the new investigation, and an SEC official would not confirm or deny whether a probe is underway.
The U.S. Justice Department has been looking into Columbia's operations since last year over allegations that the company improperly billed the government for Medicare costs. Three Columbia managers have already been charged with defrauding federal health insurance programs.
Columbia (COL) may have expected the SEC action since that agency frequently launches investigations which parallel other government probes. The SEC has the power to force the company to give up documents and insure that other documents are not destroyed, the Journal said.
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Columbia/HCA
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