Medicare Compliance & Reimbursement

As investigation into her conduct of the office of Health and Human Services Inspector General continues at the General Accounting Office, IG Janet Rehnquist has said she will leave the post June 1, citing personal and family reasons. GAO’s investigation was requested last year by top members of the Senate Finance Committee, whose ranking Democrat Max Baucus (MT) was poised to ask publicly for the IG’s resignation March 6 before she tendered it herself to the president March 4. She is the daughter of William Rehnquist, chief justice of the U.S. Supreme Court.

“It is critically important … that the IG can be trusted by our nation’s taxpayers to be fair, nonpartisan, and a tough force against fraud and abuse,” says a Baucus statement. “Over the last few months, I have grown increasingly concerned by

Ms. Rehnquist’s actions. I do not believe that she was the right person for the job at this time.” Soon after Rehnquist’s appointment in 2001, her office drew bipartisan scrutiny from Congress after several highly respected, experienced investigators left amid rumors that they had been forced out or resigned after their new boss questioned their loyalty. In addition to requesting the GAO investigation, the finance panel has conducted its own bipartisan inquiry, interviewing whistleblowers and others, according to a Capitol Hill source.

One allegation reported in the press — that Rehnquist’s office had shredded documents relevant to the inquiries — turns out to have no basis, says the source. Other widely reported irregularities have been found to have factual basis and raise “troubling issues,” however, the source adds. In addition to charges that personnel moves were made unfairly, budget problems, including overspending on travel, have emerged during Rehnquist’s tenure, according to the source.

Other issues include allegations that Rehnquist acted in a partisan manner when she granted a request from Florida Gov. Jeb Bush (R) and delayed an audit of the state’s employee pension fund until after last November’s elections and when she intervened on behalf of a Pennsylvania hospital that faced false-claims charges after three Republican members of Congress petitioned her. HHS IGs are appointed by the president but serve under the expectation that they will work in a nonpartisan manner.

Finance panel Chair Chuck Grassley (RIA), who took the lead in requesting the GAO analysis, had not said he would ask Rehnquist to resign. However, a statement from his office issued shortly after the announcement noted that the senator “has been briefed by the GAO on its findings.”

“This is the right step. The inspector general job wasn’t a good fit for her abilities,” says Grassley’s own statement. “I intend to be very involved in determining who will be taking over.” HHS leaders continue to support Rehnquist.

“Janet Rehnquist is a dedicated, passionate and compassionate public servant who has brought a renewed culture of responsibility and accountability to the office of inspector general,” says Secretary Tommy Thompson in a statement. “She is a strong and effective investigator who is providing unprecedented leadership.”