Las Vegas Review-Journal

■ A subcommitt­ee requested documentat­ion from Nevada Donor Network of its expenses.

- By Mary Hynes

Expanding its probe of the organ transplant industry, a congressio­nal subcommitt­ee on Thursday requested detailed documentat­ion from Nevada Donor Network of its expenses.

In a letter to the Nevada group’s chief executive, subcommitt­ee members said they want to determine whether Medicare had reimbursed costs unrelated to organ acquisitio­n or patient care.

In particular, the subcommitt­ee seeks documentat­ion related to the purchase by the not-for-profit group of season tickets for the Vegas Golden Knights and Las Vegas Raiders, costs the Nevada organizati­on previously said were paid for through donations, as well as executive retreats to California wine country.

“If Medicare funds reimbursed you for these executive perks, it would be inappropri­ate and potentiall­y unlawful,” states the letter, signed by U.S. Rep. Raja Krishnamoo­rthi, D-ill., chairman of the Subcommitt­ee on Economic and Consumer Policy, and subcommitt­ee member U.S. Rep. Katie Porter, D-calif.

Through a statement provided by a public relations firm, Nevada Donor Network said, “It is our intent to cooperate with the subcommitt­ee’s requests, and we remain fully committed to openness and transpar

ency.”

The subcommitt­ee is examining expenses related to organ procuremen­t organizati­ons, which are charged with recovering organs from deceased donors for transplant­ation. Nevada Donor Network is widely regarded as highly effective in serving this purpose.

After reviewing the Nevada organizati­on’s Medicare cost reports, the subcommitt­ee determined that “season tickets to profession­al sports games and board retreats to California wine country do not directly appear anywhere on the cost reports,” according to a letter to President and Chief Executive Officer Joseph Ferreira.

The subcommitt­ee said it seeks to determine whether these expenses might be hidden in the broad categories of general and administra­tive expenses reimbursed by Medicare.

Medicare pays for a large number of organ transplant operations, including more than 50 percent of kidney transplant­s.

The letter also questions whether Medicare could have paid for organ transplant expenses unrelated to Medicare recipients. It described as suspect that every single one of the 1,174 viable kidneys reported by Nevada Donor Network from 201419 was charged to Medicare.

It also took note that the organizati­on’s executives are “highly compensate­d,” with taxpayers covering more of the executive compensati­on. Ferreira earned $1.3 million between 2017 and 2019, including $473,000 in 2019, with taxpayers funding $517,000 of this compensati­on through Medicare.

In its request for documents, the subcommitt­ee also sought more informatio­n on the relationsh­ip between the group and Origin Biologics, and a joint venture to build a tissue processing plant.

The letter follows a subcommitt­ee hearing earlier this month, where Krishnamoo­rthi took aim at the Nevada group and Ferreira, who appeared to testify as the president of trade group the Associatio­n of Organ Procuremen­t Organizati­ons. The subcommitt­ee chairman said at the hearing that whistleblo­wers had accused Ferreira and others of backing a strategy for impeding the investigat­ion.

On Thursday, the subcommitt­ee also sent a letter to the trade group’s chief executive requesting financial documents detailing that organizati­on’s expenses.

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