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The action comes as Lincourt Pharmacy sues, claiming termination of its Medicaid contract violated federal law.
By JEFF TESTERMAN
© St. Petersburg Times, published November 11, 2000
TAMPA -- In a replay of the recent cases involving Vencor nursing homes, the Florida Agency for Health Care Administration has backed away from terminating a Medicaid contract for a Clearwater pharmacy after its owner filed a lawsuit claiming the state action was illegal.
The state action to rescind the termination of the Medicaid provider agreement for the Lincourt Pharmacy was dated Nov. 2, the same day Lincourt and owner Louis F. Ladson Jr. filed its suit claiming the termination violated federal law.
Lincourt, at 501 S Lincoln Ave. in Clearwater, is one of the few independent pharmacies in Florida owned by an African-American, and has traditionally catered to the poor and disabled, with about 75 percent of its clientele reliant on Medicaid. Lincourt offers free prescription service to Medicaid patients and was one of the first local pharmacies to extend services to HIV-positive clients.
Morris "Sandy" Weinberg, Lincourt's Tampa attorney, said the drugstore has already been damaged by publicity about the loss of its Medicaid contract, with a number of customers assuming they would need to find another store to fill their prescriptions.
But Weinberg said Ladson stands ready to address billing problems characterized by the state as "egregious" in order to continue serving Medicaid clients.
"Mr. Ladson is a businessman who is committed to serving a clientele that is largely underprivileged," said Weinberg. "His clients love his personal attention and consider it a tragedy if he's not going to be around. We've told AHCA we're willing and able to take corrective action needed to maintain his Medicaid contract."
Lincourt was among several Medicaid providers targeted by the state for contract cancellation last month. On Oct. 2, the date of the letter notifying Lincourt of its contract termination, Agency for Health Care Administration officials and Gov. Jeb Bush held a press conference to announce cancellation of the Medicaid contracts of six nursing homes, including three owned by Vencor.
Officials said they were targeting nursing homes with chronic deficiencies, and announced that 628 Medicaid residents from the six homes, including 249 from three Vencor homes, would have to be relocated within 30 days.
Weinberg filed suit on behalf of Vencor on Oct. 5, claiming the state had summarily canceled Medicaid agreements without notice or administrative hearing, and in violation of the federal Medicaid Act.
In a hearing Oct. 10, U.S. District Judge James D. Whittemore sided with Vencor, issuing a restraining order reinstating Medicaid funding at the Vencor homes and halting the relocation of the 249 patients. The judge also said he doubted the state's terminations were legal, and ordered AHCA back to court to defend its actions.
A week later, AHCA and Vencor announced a settlement. The state rescinded its contract terminations, and Vencor agreed to institute quality control measures at its three nursing homes.
The action against Lincourt stemmed from an audit that led officials to believe AHCA had substantially overpaid the pharmacy because of Medicaid billing problems. According to court records, the audit also highlighted other problems: missing prescription documentation and other record-keeping deficiencies, unauthorized refills, and prescriptions refilled too soon based on correct daily dosages.
However, the state apparently did not have the full audit conducted by an outside contractor when it canceled Lincourt's contract, nor did it supply a summary of the audit to Lincourt.
Following the filing of Lincourt's federal suit, Weinberg received letters dated Nov. 2 saying AHCA had rescinded its termination. The letter from AHCA general counsel Julie Gallagher said "an investigation is ongoing" of Lincourt billings, and warned that termination, suspension of Medicaid payments, recoupment of any overbilling or imposition of sanctions against Lincourt was still possible.
AHCA's general counsel's office, through spokesman Pat Glynn, declined further comment Friday.
Ladson said Friday he was pleased with the AHCA reversal, and looked forward to "serving Pinellas County's underprivileged and underserviced residents."
Weinberg said he also was satisfied.
"Instead of getting terminated without any notice, this is the way it ought to be," he said.