The Illinois Medicaid inspector general is investigating the billing practices of the medical director of Planned Parenthood of Illinois, Crain’s has learned.
Dr. Caroline Hoke was reimbursed more than $3 million by Medicaid during the state’s 2009 fiscal year, making her the program’s second-highest-paid doctor at the time, but the payments fell to zero by 2011, Crain’s analysis of state records shows.
The state Department of Healthcare and Family Services has withheld payments to Dr. Hoke until “billing issues” are resolved, a DHFS spokesman confirms. He declines to comment on the details of the case.
Planned Parenthood of Illinois CEO Carole Brite denies any wrongdoing, calling the inquiry a “routine review.” She says the organization will have to repay the state, but she declines to say how much.
The nonprofit is a key provider of abortions, contraceptives and other health care services to women, particularly the poor. The probe raises questions about an important source of funding for the organization, which received about half of its $25 million revenue from Medicaid in the fiscal year ended June 30, 2011, the most recent data available.
The Quinn administration, which in May vowed to step up audits to root out Medicaid abuse, is now confronted with a difficult test case. Appearing soft would likely provoke outrage among some Republicans and anti-abortion advocates, while seeming to punish Planned Parenthood harshly would alienate the group’s Democratic supporters.
“Because of the national debate and the acrimony on the national level, you want to be sure of everything you do,” says political consultant Thom Serafin, CEO of Chicago-based Serafin & Associates Inc. “You know everyone is watching.”