Comprehensive Annual Financial Report for the Fiscal Year Ended ... Jun 30 2002

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Sisler vs. State of Montana et al ., filed in the United States District Court, State of Montana, Missoula Division, Cause No. CV 99-125-M-DWM, plaintiffs allege that Department of Public Health and Human Services and its agent Healthy Mothers, Healthy Babies, a nonprofit corporation, fraudulently submitted monies to the federal government which were claimed as donations and as such eligible for federal matching funds.
The complaint alleges that approximately $1 million was paid to the State of
... Montana during the time period at issue.
It is further alleged that the federal government is entitled to treble damages plus civil penalties of $5,000 to $10,000 for each violation. The State believes the amount of loss in monetary terms may be closer to $300,000 rather than the higher claim asserted in the complaint.
In Travis P., et al. v. Eastmont Human Services Center, et al ., filed in the United States District Court, District of Montana, Helena Division, Civil Action No. CV 96-63-H-CCL, plaintiffs allege that the State of Montana, in its operation of the Eastmont Human Services Center and the Montana Development Center, is not placing residents in the "least restrictive environment." In addition, plaintiffs' second amended complaint, dated November 2, 2001, expanded their claims to demand services for those Medicaid eligible recipients who are "at risk" of being institutionalized or on a "waiting list" for services but cannot be served due to limited funding provided by the Montana legislature for the "home and community services program" for the developmental^ disabled.


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