Dorothy A. BrizillTestimony to the Committee on Human Services on DC GeneralHospitalApril 27, 2001

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

(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