Kansas Republican for Governor Dennis Hawver Joins Medical Supply Chain’s Antitrust Lawsuit Against Novation and Neoforma

Mr. Dennis Hawver has taken over Medical Supply Chain’s representation in its lawsuit against Novation and GHX’s hospital supply monopolization.

Kansas City, KS (PRWEB) February 8, 2006 -- This morning, Mr. Dennis Hawver, an Ozawkie attorney campaigning for the Kansas Republican Party Gubernatorial nomination entered his appearance for Medical Supply Chain (MSC), the plaintiff in an anti-trust lawsuit filed January of 2005 Medical Supply Chain, Inc. vs. Neoforma, Inc., et al., 05-2299-CM in the District of Kansas. MSC is seeking $1.5 billion in damages from Novation, Neoforma, and their executives, as well as GE (GHX), US Bank and investment banking firm Piper Jaffray. The parties have been defending in court since 2002 over MSC’s allegations Novation and its co-conspirators artificially inflate hospital supply costs through their distribution monopoly's Neoforma and GHX (Global Healthcare Exchange). MSC alleges the practices led to fraudulent overcharging of Medicare by $20 billion annually for hospital and nursing home supplies and the overcharging of Medicaid by $7 billion annually on prescription drugs.

On December 5, 2005, MSC succeeded in pressuring Novation to end its effort since 1993 to keep inexpensive safety needles and syringes out of its distribution network. A Fort Worth Weekly publication November 23, 2005 cover story ("Hijacking at the Hospital”) reported the lack of the safe needles resulted in as many as 60,000 healthcare workers contracting serious infectious diseases from accidental needle sticks in the last decade, including an average of one a week infected with the HIV virus.

Dozens of hospitals and clinics in Kansas are part of Novation’s monopolized distribution system, including: Hays Medical Center, Hutchison Hospital, Pratt Regional Medical Center, Salina Regional Health Center Cheyenne County Hospital, Hiawatha Community Hospital, Lawrence Memorial Hospital, Mitchell County Hospital, and Stormont-Vail HealthCare.

MSC’s CEO Samuel Lipari stated: “Mr. Hawver is the most courageous leader I know. There has been so much done outside of court including violence to keep this lawsuit from moving forward that I was losing faith in justice. It is inspiring that Mr. Hawver knows the extreme risks he is taking and he is still willing to stand up for enforcing the laws of this country. Ken Mehlman, chairman of the Republican National Committee is right, candidates that do things instead of just talk about them are the ones to watch!”

Mr. Hawver proclaimed: “Politicians who help maintain the hospital supply monopoly receive a lot of campaign contributions and I don’t want to be like Governor Matt Blunt of Missouri and cut thousands of people off Medicaid when there is not a free market providing healthcare services Kansans can afford.”

Senator Sam Brownback (R-Kansas) a controversial GOP presidential hopeful conducted a series of behind-the-scenes talks in July with Novation’s lobbyists to use voluntary disclosure guidelines and avoid increased regulation to combat Novation’s monopolization of medical devices, drugs and other products hospitals purchase.

Nearly two-thirds of low-income Kansans who participated in a survey last year reported having medical debt, causing employment problems and affecting their ability to get health care, according to a new report by The Access Project, a national research and health advocacy organization, and Brandeis University. The study gathered data for Kim Moore of the Health Ministry Fund from 1,000 people with incomes of less than $25,000 at four community health centers in Wichita, Garden City and Emporia between May and August 2005.

On January 26th, 2006, the Kansas Senate passed a bill creating a Kansas Medicaid Inspector General to investigate and recover what lawmakers have estimated to be $110 million lost by Kansas in Medicaid Fraud. Kansas House Minority Leader Dennis McKinney says double-digit growth in health care costs is hurting Kansas businesses and the Kansas economy. The state's Medicaid program for low-income Kansans has seen its costs increase by about 12% a year. The program now costs $2.2 billion.

About Dennis Hawver: Mr. Hawver is an Ozawkie, Kansas attorney and a Republican Candidate for Governor. Mr. Hawver also represents the whistleblower in a six year long False Claims Act prosecution of Blue Cross Blue Shield of Kansas over its administration of Medicare Part B claims. Mr. Hawver advocates smaller, more responsible government. To learn more about Mr. Hawver's Gubernatorial Campaign visit: http://www.commonsensein06.com

About Medical Supply Chain: Medical Supply Chain (MSC) is a worldwide provider of web-based supply chain collaboration solutions with an electronic marketplace serving health care communities and their trading partners. Privately held, the company was founded in May of 2000 with a mission to deliver enabling supply chain technology in health care. To learn more about Medical Supply Chain visit: http://www.MedicalSupplyChain.com

About Ft. Worth Weekly: Ft. Worth Weekly 1204-B W Seventh St Ste 201 Ft. Worth, Texas 76102 Phone: (817) 321-9700 Fax: (817) 335-9575. The Weekly’s editorial staff may have more decorations per capita than any newsroom in the country: two Pulitzer Prizes and the George Polk Award for courageous reporting, plus numerous awards from the Houston and Dallas press clubs, the State Bar, National Women’s Political Caucus, Association of Alternative Newsweeklies and Investigative Reporters and Editors. The Weekly’s News and features have helped expose the corruption that brought down MCI Worldcom and helped victims of human trafficking, corporate racism, and government-sanctioned pollution receive justice. To learn more visit: http://www.fwweekly.com

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