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Dorothy A. Brizill
Testimony to the Committee on Human Services on DC General Hospital
April 27, 2001

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DC General: Politics as Usual

We have to go beyond politics as usual, Mayor Williams claims. DC General and the Public Benefit Corporation were fiscally irresponsible and badly managed, and he has proposed an entirely new health care delivery system. So it's only fair to examine the proposed contract and the fiscal strength and management of his chosen subcontractors.

The Health Maintenance Organization, or HMO, that he has chosen to get the multimillion-dollar, nine-year contract to provide "administrative services" and access to its physician network. is DC Chartered Health Care, Inc. Last September, the leading agency rating HMO's, Weiss, gave DC Chartered a grade of D+, and put it in the "weak" category. DC Chartered, although open for business from the public, gets 98 percent of its business from its DC government contract to provide health services to Medicaid residents. It has never been able to attract any other major clients, and it has never made a profit. Last May DC Chartered was bought in a bankruptcy sale by DC accountant Jeffrey Thompson, who kept the same management team in place. This year it again showed its management skill by filing its required annual report with the Insurance Department yesterday, 54 days late, after missing the filing deadline of March 1 and three extensions. As a reward, the contract was finalized by the Control Board while the company was out of compliance with DC law, and the Mayor's health contract will triple the company's business.

Since there are many fiscally and managerially responsible HMO's, why did the Mayor choose a weak and shaky one instead? The Mayor has offered no explanation. Here it is. In the past few months, since Jeffrey Thompson bought DC Chartered in May 2000, he, his business partners and associates, and the companies he owns, have contributed at least $65,000 to the Mayor's political causes. They have become one of the Mayor's largest political contributors. They gave $20,000 to the committee that advocated the Mayor's position in the school charter amendment election, and then they gave $45,000 to a political action committee to campaign for the Mayor's favored school board candidates. We have no idea how much they contributed to the Mayor's "non-profits," since contributions to these organizations are still secret. DC Chartered Health Care, Inc., will manage and administer the health care of DC residents for one reason: Mayor Anthony A. Williams put the health care of DC residents up for auction, and he sold it to the highest bidder. This isn't health reform; it is politics as usual.

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Chart 1: Political Contributions to Mayor Williams by Jeffrey Thompson and Associates, June 2000-Present

New School Leadership Committee, supporting the school charter referendum proposed by Mayor Williams

Mary Levy, Chairman
Bill Lightfoot, Treasurer
Mark Jones, Campaign Manager

Total receipts, $157,360

Contribution from DC Healthcare Systems on June 22, 2000, $20,000, or 12.5% of total receipts

Better Schools PAC, established to support Mayor William's candidates for the school board

Established October 23, 2000
Lisa Bolden, Treasurer, 625-4346
Joe Louis Ruffin, Jr., Co-treasurer as of February 20, 2001, 5353 29th Street, NW, 686-5972

Total receipts as of December 10, 2000 $54,000
Balance in account as of February 20, 2001, $299

Contributions from Thompson and his associates

Thompson, Cobb, Bazilio Associates, PC, 1101 15th Street, NW, October 23, 2000 $5,000
Jeffrey Thompson, partner, Thompson, Cobb, Bazilio, October 23, 2000 $5,000
Ralph Bazilio, partner, Thompson, Cobb, Bazilio, October 23, 2000 $5,000
Dorothea Bazilio, 1101 15th Street, NW, October 23, 2000 $5,000
Michael Cobb, partner, Thompson, Cobb, Bazilio, November 6, 2000  $5,000
Chartered Family Health Care, 820 21st Street, NE, October 23, 2000 $5,000
DC Chartered Health Plan, 820 1st Street, NE, October 23, 2000 $5,000
DC Health Care Systems, Inc., 1101 15th Street, NW, October 23, 2000 $5,000
Rapidtrans, Inc., 820 1st Street, NE $5,000
Total  $45,000

(Total is 83 percent of total contributions)

Other contributions:
Suzanne Peck, OCTO Chief, $5,000
Lottery Technology Enterprises, Inc., 2101 Martin Luther King, SE, $1,500
DC Services, Inc., 2101 Martin Luther King, SE, $1,500
New Technology Games, Inc., 2101 Martin Luther King, SE, $1,000

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Chart 2: Political Contributions to Councilmembers by Jeffrey Thompson & Associates Since 09/00

Bazilio, Ralph

Chavous

09-11-00

500

Bazilio, Dorothea

Chavous

09-11-00

500

Bazilio, Ralph

Jarvis

09-11-00

500

Bazilio, Dorothea

Jarvis

09-11-00

500

Chartered Family Healthcare Center

Brazil

11-03-00

500

Chartered Family Healthcare Center

Fenty

11-01-00

500

Chartered Family Healthcare Center

Jarvis

09-11-00

500

Chartered Family Healthcare Center

Schwartz

12-10-00

500

DC Chartered Health Plan

Brazil

11-03-00

500

DC Chartered Health Plan

Chavous

09-11-00

500

DC Health Care Systems

Chavous

09-11-00

500

DC Chartered Health Plan

Fenty

11-01-00

500

DC Health Care Systems

Fenty

11-01-00

500

DC Chartered Health Plan

Jarvis

09-12-00

500

DC Health Care Systems

Jarvis

09-12-00

500

DC Chartered Health Plan

Schwartz

12-10-00

500

Rapidtrans

Brazil

11-03-00

500

Rapidtrans

Jarvis

09-11-00

500

Rapidtrans

Schwartz

12-10-00

500

Thompson, Jeffrey

Brazil

11-03-00

500

Thompson, Cobb, Bazilio

Brazil

11-03-00

500

Thompson, Jeffrey

Chavous

09-11-00

500

Thompson, Cobb, Bazilio

Chavous

09-11-00

500

Thompson, Jeffrey

Fenty

11-01-00

500

Thompson, Cobb, Bazilio

Fenty

11-01-00

500

Thompson, Jeffrey

Jarvis

09-11-00

500

Thompson, Cobb, Bazilio

Jarvis

09-11-00

500

Thompson, Cobb, Bazilio

Schwartz

12-10-00

500

TOTAL

   

14,000

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Chart 3: Political Contributions to Non-District Political Committees by Jeffrey Thompson and Associates, 1999-Present

DC Chartered Health Plan, Inc.

Tom Davis Virginia Victory Fund

08-28-00

$10,000

DC Healthcare Systems

Tom Davis Virginia Victory Fund

09-29-00

1,000

Jeffrey Thompson

Gore 2000, Inc.

03-29-99

1,000

Jeffrey Thompson

Gore-Lieberman General Election Legal and Accounting Compliance Fund

09-12-00

500

Jeffrey Thompson

Tom Davis Federal Victory Fund

08-28-00

5,000

Jeffrey Thompson

Hillary Rodham Clinton for U.S. Senate Committee, Inc.

08-02-99

1,000

Jeffrey Thompson

Cynthia McKinney for Congress

02-11-00

1,000

Jeffrey Thompson

Emily's List

03-14-00

500

Jeffrey Thompson

Friends of Ernest Istook

08-11-99

1,000

Ralph Bazilio

Tom Davis for Congress

06-29-99

1,000

Ralph Bazilio

Tom Davis for Congress

06-29-99

1,000

Ralph Bazilio

Tom Davis Federal Victory Fund

09-30-00

500

Dorothea Bazilio

Tom Davis for Congress

06-29-99

1,000

Dorothea Bazilio

Tom Davis for Congress

06-29-99

1,000

Dorothea Bazilio

Tom Davis Federal Victory Fund

09-30-00

500

Michael Cobb

Tom Davis for Congress

06-29-99

1,000

Michael Cobb

Tom Davis for Congress

06-29-99

1,000

Michael Cobb

Gore 2000, Inc.

09-28-99

1,000

TOTAL

   

$29,000

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