Posted at 12:34 p.m., Wednesday, February 5, 2003
$1 million settlement reached in Felix case
By Jennifer Hiller
Advertiser Education Writer
The settlement announced today was the first development since May in an investigation into alleged fraud, abuse and overcharging in the implementation of the federal court order to improve services to Hawai'i's special-needs students.
Hawai'i Pacific Health, formerly known as Kapi'olani Health, will pay the state $500,000 over three years and an additional $500,000 after that if it does not cooperate with investigators who still want company documents and interviews with employees.
Kapi'olani Health does not admit liability and is not subject to state criminal prosecution under the agreement.
The agreement was signed in November, but was announced today by the members of the joint Senate-House Felix Investigative Committee, who learned of it Saturday.
The Department of Health entered a three-year contract with Kapi'olani Health in 1996 for $18.2 million over two years for services for 1,500 children. Kapi'olani Health was an umbrella provider of services, contracting with dozens of other companies and individual providers.
"We wanted to highlight this one because it's a sizable amount," said Rep. Scott Saiki, co-chairman of the Legislature's Felix Investigative Committee.
The single indictment issued so far was against Susan Puapuaga, who worked as a therapeutic aide with the Alaka'i Na Keiki mental health services agency. She was charg ed in May with 10 felony counts of medical assistance fraud for allegedly billing the state for unprovided services worth $1,800. She pleaded no-contest in July.
