GOVERNOR ELIOT SPITZER AND LIEUTENANT GOVERNOR DAVID PATERSON

NOMINATE NEW YORK STATE MEDICAID INSPECTOR GENERAL

Governor Eliot Spitzer and Lieutenant Governor David Paterson today

announced the nomination of James G. Sheehan to serve as New York State

Medicaid Inspector General.

As Medicaid Inspector General, Mr. Sheehan will oversee the fraud and abuse

enforcement activities of New York’s $50 billion Medicaid program. The New

York State Office of the Medicaid Inspector General audits and investigates

Medicaid providers, recovers revenues through its enforcement system, and

develops and operates automated health care data detection systems.

“As a career prosecutor specializing in complex health care enforcement and

recovery matters, Mr. Sheehan has experience rooting out fraud that

dramatically drives up costs and severely threatens the efficiency and

delivery of health care services,” said Governor Spitzer. “New York State’s

health care spending is the highest in the nation and our system requires

dramatic reform.

Mr. Sheehan will bring his experience and energy to that effort.”

Mr. Sheehan currently serves as an Associate U.S. Attorney for Civil

Programs in the Eastern District of Pennsylvania. He has served as an

Assistant U.S. Attorney since 1980, and a supervisory Assistant U.S.

Attorney since 1983.

While serving in the U.S. Department of Justice’s Philadelphia office, Mr.

Sheehan personally handled over 500 health care fraud matters, as well as

managed all civil litigation for the federal Eastern District of

Pennsylvania. He has personally led, managed and developed health fraud

and kickback cases from pharmacy benefit firms, pharmaceutical

manufacturers, medical suppliers, hospitals, nursing homes, and physicians.

From 1999 to 2006, Mr. Sheehan led the government investigation against

Medco Health Solutions, which resulted in the recovery of over $155

million, as well as substantial business changes to protect patients and

pharmacists. From 1993 to 1997, he was lead counsel in United States v.

SmithKline Beecham Clinical Labs, which resulted in a $332 million recovery

for the United States.

Mr. Sheehan has supervised joint health care investigation teams that

included the FBI, Federal Inspector Generals from many agencies, and

private investigators, which resulted in more than $600 million in awards.

He has also developed a model Qui Tam Program to identify and pursue fraud

cases.

Mr. Sheehan received his B.A. from Swarthmore College and his J.D. from

Harvard Law School.

Mr. Sheehan comes to New York State through the Intergovernmental Personnel

Act program. This program provides the opportunity for career federal,

state and local employees to work at another level of government. The

program maintains salary and benefits for participating staff, with any

difference paid through the originating agency.

As Medicaid Inspector General, Mr. Sheehan’s annual salary will be

$136,000, with the $9,300 difference between that amount and Mr. Sheehan's

current salary to be paid by the U.S. Department of Justice.