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Contractor Maximus Subpoenaed

Prosecutors Seek Medicaid Reimbursement Claims Records

By Michael S. Rosenwald
Washington Post Staff Writer
Saturday, December 11, 2004; Page E02

Maximus Inc., which manages federal programs for state and local governments, disclosed yesterday that federal prosecutors have subpoenaed records connected to Medicaid reimbursement claims it prepared for the District.

The U.S. attorney's office in the District appears "to be investigating issues pertaining to compliance with federal health care laws," the Reston company said in a Securities and Exchange Commission filing.

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The target of the investigation was unknown yesterday.

The subpoena, received in October, requested company records "primarily in the area of assisting in the submission and payment of federal Medicaid reimbursement claims prepared on behalf of the District of Columbia."

Maximus said it is cooperating fully and does not believe it violated federal health care laws. "We do not believe that this matter will have a material adverse effect on our financial condition or our results of operations," the company said in a written statement.

A company spokeswoman did not return calls seeking comment. A spokesman for the U.S. attorney's office declined to comment.

Edward Reiskin, chief of staff for City Administrator Robert C. Bobb, said his office and the Medicaid director's office have not received subpoenas relating to a Medicaid investigation, nor does know that any other District official has received one.

Maximus has more than 5,500 employees in 280 offices in the United States, Canada and Australia. It provides a variety of consulting, management, and information technology services.

For the fiscal year ended Sept. 30, Maximus had a profit of $38.8 million on $603.8 million in revenue.

Company shares fell 8 cents yesterday, closing at $30.86

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