Another TennCare contractor reveals consulting ties to Sen. Ford

Fire retardant foam, sprayed from inside a room at the Bullard Motel in Fair Bluff, leaves a snow-like cloud through a hole in the roof. (Deuce Niven photo)

Fire retardant foam, sprayed from inside a room at the Bullard Motel in Fair Bluff, leaves a snow-like cloud through a hole in the roof. (Deuce Niven photo)

Detroit-based United American Healthcare Corp. said it ended the deal with Ford in March amid increased scrutiny into the Memphis Democrat’s business dealings.

In a two-page statement given to state officials, the company also said its senior vice president, Osbie Howard, would retire immediately. The report said Howard was involved in a separate venture with Ford that had not been approved by the company.

Ford’s ties to Managed Care Services Group, which received $1.1 million from Doral Dental, are already the focus of state and federal probes. Ford was paid as much as $429,000 in that deal.

United American Healthcare revealed its ties to Ford just a day after the state Senate passed sweeping ethics reform aimed squarely at the allegations swirling around Ford.

State officials promised a more detailed look into the TennCare contractor.

“Today’s announcement raises further questions and requires further scrutiny,” TennCare Director J. D. Hickey said in a statement Friday. “We are issuing a letter back to the parent company this evening to request more information about this relationship.”

United American Healthcare has a subsidiary known as UAHC Health Plan of Tennessee. That subsidiary, once known as OmniCare, has a contract with the state to provide managed care to 130,000 TennCare enrollees.

United American Healthcare said its actions were legal because it paid Ford to help win business only in other states. The company said Ford was hired by the parent company in 2001 — not by the Tennessee subsidiary.

The company didn’t say how much it paid Ford for the work.

“However, in light of the recent public controversy in Tennessee regarding the regulation of consulting arrangements involving legislators and in the interest of avoiding any further distractions that might negatively impact the TennCare program … UAHC terminated its contract with Sen. Ford effective March 11, 2005,” the company said in a statement.

Ten days before terminating Ford’s deal, the health care company had reported to state officials that it was in compliance with contract provisions banning the flow of money to state officials, Hickey said.

Ford did not immediately return a call Friday from The Associated Press.

Howard’s name first surfaced last month when a separate TennCare contractor, Doral Dental, released an internal investigation, which said both Ford and Howard represented Managed Care Services at a meeting last year.

United American Healthcare said it doesn’t know why Howard was involved in that venture and is continuing its investigation.

The statement says Managed Care Services is unrelated to United American Healthcare of any of its subsidiaries.

“Mr. Howard’s outside business activities with Managed Care Services Group were not approved by UAHC … and were not consistent with UAHC’s code of conduct applicable to its executive officers,” the report stated.

Others connected to UAHC were involved in the Managed Care Services Group. The company’s registered address was at the home of Ronald R. Dobbins, who was UAHC president and chief operating officer from 1985 to 1998.

The company did not comment on revelations from earlier this month that OmniCare Health Plan bought insurance policies from Ford, who is also a licensed insurance agent.

United American Healthcare said Howard’s role at its Tennessee affiliate would be filled by Chief Operating Officer Stephanie Dowell.

UAHC Health Plan of Tennessee, based in Memphis, is one of TennCare’s larger health maintenance organizations.