DEMOCRAT DIRTY LAUNDRY: Did Berkley Exploit Her Influence in Congress to Make Her Husband Rich?
Experts Describe the Deals Benefitting Her Husband as a “Very Serious Conflict of Interest”
SPIN CYCLE: Speaker Pelosi Vowed that Democrats Would “Demand the Highest Ethics from Every Public Servant”:
“Our goal is to restore accountability, honesty and openness at all levels of government. To do so, we will create and enforce rules that demand the highest ethics from every public servant, sever unethical ties between lawmakers and lobbyists, and establish clear standards that prevent the trading of official business for gifts.” (Nancy Pelosi’s “A New Direction for America,” Page 21)
RINSE CYCLE: Shelley Berkley Makes “Striking” Example of a “Very Serious Conflict of Interest” By Enriching Her Family:
Federal regulators moved to shut down the kidney transplant program, but the proposed penalty brought a rebuke from Representative Shelley Berkley, Democrat of Nevada, who helped lead a successful effort to get the officials from Washington to back down.
In pleading for a reprieve, Ms. Berkley and other members of Nevada’s Congressional delegation said they were acting on behalf of the state’s families, citing dire health consequences if the program was halted. But the congresswoman’s efforts also benefited her husband, a physician whose nephrology practice directs medical services at the hospital’s kidney care department — an arrangement that expanded after her intervention and is now reflected in a $738,000-a-year contract with the hospital.
Ms. Berkley’s actions were among a series over the last five years in which she pushed legislation or twisted the arms of federal regulators to pursue an agenda that is aligned with the business interests of her husband, Dr. Larry Lehrner. In addition to the hospital contract, he operates a dozen dialysis centers in Nevada and has played a central role in an industry campaign to lobby members of Congress — including his wife — on behalf of kidney care providers.
Dr. Lehrner helped build a political action committee that has regularly turned to Ms. Berkley to champion its causes. She has co-sponsored at least five House bills that would expand federal reimbursements or other assistance for kidney care, written letters to regulators to block enforcing rules or ease the flow of money to kidney care centers and appeared regularly at fund-raising events sponsored by a professional organization her husband has helped run.
“This is a very serious conflict of interest,” said James A. Thurber, a former Congressional aide who has helped revise ethics rules and is now director of the Center for Congressional and Presidential Studies at American University. “There is an official use of power here to help him and the family — and I think that is unethical.”
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The intermingling of Ms. Berkley’s public and private life, though, is striking even among her peers on Capitol Hill, and surfaced in an examination by The New York Times of how lawmakers forge particularly close ties to industries with an agenda in Washington.
As Ms. Berkley has pushed the cause of kidney care in Congress, her husband’s practice has boomed, thanks in part to his joint ownership of dialysis centers with DaVita, a giant in the industry and one of Ms. Berkley’s biggest campaign contributors. She is one of the richest members of Congress, as she or her husband hold assets valued from $7 million to $23 million, according to her most recent financial disclosure forms.
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Mr. Rowlett’s death and four recent others in the first year after the surgery, as well as 10 transplant failures, were part of a troubling pattern — the death and failure rates were more than twice the expected level. That led the federal Centers for Medicare and Medicaid Services to issue an order to revoke the certification for the hospital’s transplant program — which does about 50 transplants a year — and cut off Medicare financing, effectively shutting the program down.
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Desperate for a second chance, hospital officials appealed to members of the Nevada Congressional delegation. Ms. Berkley sent a letter, signed by two other lawmakers, warning that cutting off money would “jeopardize the health of hundreds” of constituents. She and the other lawmakers helped set up a series of conference calls between hospital and Medicare officials.
Soon after, the Centers for Medicare and Medicaid Services, for the first time, agreed to override provisions that would have required decertifying the program. In exchange, the hospital promised to remedy the problems.
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In early February 2008, for example, Ms. Berkley received a series of campaign contributions, first $1,000 from Amgen, then $2,000 from Kidney Care Partners, a trade group backed by Amgen and DaVita, then $3,000 from DaVita, and then $1,000 from Dr. Lehrner’s group, the Renal Physicians.
The day that two of those checks were delivered, Ms. Berkley sent a letter to Representative Pete Stark, Democrat of California, then chairman of the House Ways and Means subcommittee with jurisdiction over Medicare, warning him to move carefully in considering changes in compensating doctors who provided dialysis treatments.
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