The Clinton Herald, Clinton, Iowa

Clinton

October 3, 2013

Attorney: Clinton city leaders pondered potential of city bankruptcy

Day 4 of the city's malpractice lawsuit includes testimony from Attorney Michael Walker.

WASHINGTON — City of Clinton officials discussed filing for bankruptcy after learning the city was being sued for Medicare fraud, court testimony Thursday revealed.

Attorney Michael Walker, who the city is suing for legal malpractice, returned to the stand Thursday morning as the city's legal malpractice suit continued. Through his testimony, jurors learned city officials feared devastating effects as a result of the 2008 Medicare fraud lawsuit. Walker, along with his firm Hopkins and Huebner, represented the city in the Medicare fraud case that former firefighter and whistleblower Timothy Schultheis brought upon the city, claiming the city had knowingly billed Medicare and Medicaid incorrectly for ambulance calls in order to receive a higher reimbursement rate.

The first time Walker spoke to the Clinton City Council was during a closed session meeting on Sept. 29, 2009, shortly after the case was unsealed in federal court. At that time, Walker told the city of the

potential risk it faced in the worst-case scenario.

If all ambulance calls had been improperly coded at the higher advanced life support code instead of the lower basic life support code during the six-year period under scrutiny, the city could have faced a $100 million penalty, Walker told council members at that meeting. Although, he testified Thursday, he and the city knew that not all of the records had been improperly coded and therefore the $100 million fine was not a real threat.

However, based on a ratio from billing and coding expert Douglas Wolfberg, a worst case scenario of $40 million was a potential risk. During the initial meeting in September 2009, one council member asked if the citizens would be able to file for bankruptcy because of the suit. Walker testified Thursday he told the council during that meeting he could not answer that question because he did not work with bankruptcy law.

Text Only
Clinton
  • Medication drop boxes available

    Although no formal event is planned in Clinton County for Saturday’s nationwide Medication Take Back Day, area officials are reminding residents this week about permanent drop boxes aT area law enforcement agencies.
    Unused or expired medications can be disposed of during normal business hours in the lobbies of four police departments in Clinton County — Camanche Police Department, 819 South Washington Blvd.; Clinton County Sheriff’s office, 241 Seventh Ave. North; Clinton Police Department, 116 Sixth Ave. South; DeWitt Police Department, 606 Ninth St.

    April 23, 2014

  • Legal Services photo New legal services agreement proceeds CLINTON - By one vote, the Clinton City Council voted for Lynch Dallas over local firm Frey, Haufe and Current as its next city attorney service. On Tuesday, in a show of solidarity, the council was unanimous, officially hiring the Cedar Rapids group

    April 23, 2014 1 Photo

  • Building to feature generator CLINTON -- After more than seven years of planning, the Clinton County Administration building is getting a new 300-kilowatt diesel-powered Caterpillar generator installed on the campus allowing it to become a certified emergency shelter and warming

    April 23, 2014

  • Lancers blank Queens, Kings CLINTON -- Chloe Gottschalk scored a hat trick to lead North Scott past Clinton 7-0 in girls soccer Tuesday night. Gina Matthys added a pair of goals, while Lindsay Gallens and Olivia Schmidt scored once apiece. Abby Nass played all 80 minutes in goa

    April 23, 2014

  • Bandits bang out 11 runs on LumberKings CLINTON -- At least the kids who showed up for the Clinton LumberKings game on Tuesday afternoon had a good time. The home team on the field didn't after dropping the matinee to Quad Cities 11-2. Eddie Campbell got the ball for the LumberKings, but

    April 23, 2014

  • O'Neill presents CBA terms CLINTON - Public support for emergency responders has grown over the two weeks since the Clinton City Council tabled its collective bargaining resolution with city firefighters. The matter was still unresolved by the end of Tuesday's regular council

    April 23, 2014

  • 4-23-14 Clinton Middle School Forum Photo 2 Leadership Team field concerns from parents CLINTON -- Progress on the new Clinton Middle School continues to move forward and as the deadline for completion draws nearer, school district officials and staff members are interested to know how the community is feeling about the project. What th

    April 23, 2014 2 Photos

  • 4-23-14 1B or 3B-Photo, Gateway B race Kings kick off big week at Gateway CLINTON -- It's not quite the state meet in terms of importance, but this week is right up there for the Clinton boys track and field team. Seniors Deshond Robinson and Nathan Harden were in top form Tuesday as they tuned up for the Drake Relays by h

    April 23, 2014 3 Photos

  • CCC instructor earns top honor CLINTON -- A Clinton Community College faculty member recently brought home a top award from a state conference. Beth Wood, math instructor at CCC, received the e11 Excellence in Online Instruction award at the Iowa Community College Online Consortiu

    April 23, 2014

  • Human trafficking Stickers highlight human trafficking CLINTON -- Area establishments are receiving added decor this week thanks to an anti-trafficking committee. Sisters of St. Francis Center for Active Nonviolence and Peacemaking Anti-Trafficking committee members are placing stickers in local establis

    April 23, 2014 1 Photo

Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Facebook