With profit-pressure on them, and U.S. insurance providers catching on, the psychiatric facilities expanded their zone of influence north of the border to Canada.
Why No Action?
In December 1992, two Texas law firms advised then – OHIP director Robert MacMillan that the Ministry of Health had an exceedingly good chance of not only recovering defrauded funds, but that it was a relatively easy and painless procedure. These firms had ample evidence in their possession and had already successfully litigated against a number of the psychiatric facilities. The legal opinion noted that MacMillan was in communication with Congresswoman Schroeder and therefore must have known the extent of the damage that had been done to OHIP. But much to their surprise, the two law firms received no further communication from MacMillan or anyone else at the ministry following their submission. One lawyer who worked on drafting it stated that it was strange that their correspondence line was severed so suddenly, especially since it was MacMillan who initiated the inquiry in the first place. One possible cause for the ministry’s hasty retreat may have been a barrage of law suits that were suddenly filed by facilities that had been bilking OHIP around the same time. One such claim, filed in the Ontario Court of Justice (General Division), is dated December 11, 1992. It was a breach of contract suit and the claimant was the Family Recovery Center. The defendants included numerous Ontario government officials including MacMillan, Dr. Robert Ecclestone of OHIP and more.
The $400 Million Swindle continued...
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