Rick Scott is running for governor of Florida despite lugging at least one heavy piece of baggage: He made his fortune running a company that committed one of the largest Medicare frauds in history.
Scott’s Republican challenger in Florida’s primary, Bill McCollum, and his Democratic challenger in an ongoing gubernatorial battle, Alex Sink, have repeatedly raised this seemingly dooming fact.
Scott ran nationwide hospital chain Columbia/HCA for 10 years. His board ousted him in 1997 amid FBI raids. The company pleaded guilty to 14 felonies and paid $1.7 billion in civil and criminal fines, settling allegations of kickbacks and false billing. Scott reportedly walked away with $300 million. He moved to Naples seven years ago, establishing roots in a state with no personal income tax. And now, at 57, he wants to run the place.
So how do you campaign for chief executive of an entire state when you were once chief executive of a notorious corporate scandal? Here are just some of the brilliant steps Scott has taken:
Take responsibility, avoid blame. “I’ve made mistakes in my life,” Scott acknowledges on his website. “And mistakes were certainly made at Columbia/HCA As CEO, I accept responsibility for what happened on my watch.” But as for the systemic fraud that went on, well, Scott has repeatedly claimed he didn’t know anything about that. In a deposition in which Scott’s own attorney cited the scandal, Scott pleaded the Fifth 75 times. He was never charged. So voters can decide for themselves: Was he a crooked CEO, or just a clueless one?
Attack socialized medicine after making millions from socialized medicine. Scott spent $5 million of his own money launching “Conservatives for Patients’ Rights” in March 2009, financing heated opposition to President Obama’s health-care reforms. “When the government gets involved, you run out of money and health care gets rationed,” Scott warned, as if he never took a government dollar or rationed health care in his life. It’s like a health-care reform protester once said: “Get your government hands off my Medicare.”
In a world of runaway health-care expenses, capitalize on the prohibitive costs of private insurance. In 2001, Scott founded Solantic Corp., a chain of walk-in clinics serving people with no insurance. “Solantic was the first urgent-care center operator to have menu boards similar to Starbucks, listing all prices up front,” Scott boasts on his website.
Hey, how’d ya like a Venti Peppermint Java Chip Frappuccino with that head wound dressing, sir?
Attack the attackers. While Sink’s campaign continually accuses Scott of lies, fraud and deception, Scott launched ads this week accusing Sink of bilking investors when she was the Florida president of NationsBank in the 1990s. NationsBank, now part of Bank of America Corp., was based in Charlotte, N.C., had an investment company called NationsSecurities that indeed settled deceptive trade practices allegations after investigations by state and federal regulators. Sink’s campaign manager said Sink wasn’t involved in this division, and none of its employees reported to her. But Scott’s new ad says: “Sink’s bank preyed on investors.”
Boast of creating jobs, even after buying hospitals just to shut them down. “I’m an entrepreneur and business owner,” Scott boasts on his website. “I know all too well how government can stifle creativity, productivity and business growth.”
Buy the election. Scott successfully sued to remove state campaign spending limits. He has reportedly spent more than $52 million of his own money on his race. “Rick Scott, a man who oversaw the most massive Medicare fraud scheme in history, just can’t seem to play by the rules,” Matt Williams, campaign manager for McCollum, told reporters in July when Scott sued to change campaign finance laws. “He’s spending the millions he ripped off of taxpayers to fund a self-image repair campaign that has stopped at nothing to cover his past misdeeds and distort Bill McCollum’s record of conservative leadership.”
Yeah? So how’s Scott’s strategy working out?
Scott eked out a victory against McCollum, a former Congressman and state attorney general, in what politicos have called a scorched-earth primary. Now, he is sinking Sink. A United Faculty of Miami Dade College poll released Tuesday gives him a 51.5 percent to 46 percent lead.
“I learned very hard lessons,” Scott says on his website, “and those lessons have helped me become a better businessman and leader. Lessons I will bring to the Governorship with your support and vote.”
Al Lewis: al.lewis@dowjones.com, 212-416-2617 or
