Thank you for coming today.... We won't keep you long, because we know there's a parade and other Derby events that some of you want to attend.
During the last seven days, the Democratic Primary Race for U.S. Senate has heated up considerably. Specifically, in the last three or four days, television advertising from my campaign and from my opponent Bruce Lunsford's campaign have come under heavy scrutiny in the media. There have been allegations, charges and countercharges that some of that advertising has been false or misleading.
In my business career, I've always addressed issues honestly and in a straightforward manner. That's why I'm here to address these issues head on and to clear up any confusion about television advertisements that have come from this campaign.
This primary race for Senate is extremely important for the voters of this state. Voters are clearly tired of Mitch McConnell and The George Bush administration. They're tired of failed leadership that has brought us record gas prices, economic recession, an unprecedented healthcare crisis and an endless war in Iraq. In this election voters will choose which Democrat will represent them in the campaign to defeat Mitch McConnell this fall.
To make an informed decision, voters have to be able to compare the past performance and the record of each of the candidates.
My record is an open book. I'm running for Senate because I believe I can bring the leadership and the common-sense approach that will help us find answers to our pressing problems together. I've never run for public office before. But I've always believed in Public Service. That's the way I was brought up in Kentucky -- by a mother and a father who taught me that after your family, your highest calling is to help others.
I'm a Kentucky businessman who together with my partner started a small business. We grew that business domestically and internationally, creating hundreds of good jobs. Our company reflected my personal belief that all people are important, are worthy of respect and should be treated equally. I've continued to invest and grow businesses throughout my career. Now I want to bring that straightforward, honest approach to the problems we face in Washington.
The record of my opponent, Bruce Lunsford, also is well documented. But a major issue in this campaign has become his attempt to obscure his record as CEO of Vencor, a nursing home company that went bankrupt and was the subject of federal investigations and investor lawsuits. Voters have a right to know the truth. Our advertising is an attempt to shine a light on the extensive public record of Mr. Lunsford's stewardship of Vencor during the period leading up to its Bankruptcy in 1999. Mr. Lunsford's leadership of Vencor was marred by a variety of serious problems that voters have a right to know.
* Fact: During Mr. Lunsford's tenure, the Department of Justice charged Vencor with knowingly submitting false claims to Medicare, Medicaid and TriCare. The company agreed to pay a $104 million fine to settle those charges. On his website, Mr. Lunsford attempts to sweep this fact under the rug by saying that he never admitted guilt in the case and that he settled for "Pennies on the Dollar." We ask how that response is any reassurance to voters. And we ask this: If the $104 million dollar fine that Vencor paid represents pennies on the dollar, what was the amount they were charged with overbilling. Was it $1 billion or more? We ask Mr. Lunsford to come forward and disclose honestly and fully the extent of the Justice Department charge.
* Fact: During Mr. Lunsford's tenure, Vencor paid bonuses to employees who evicted elderly nursing home patients whose bills were paid by Medicaid. They did this in an effort to clear-out space for new patients who could pay more than the Medicaid patients. Mr. Lunsford apologized for the practice and said he had no prior knowledge of it... We ask: Why not sir?
* Fact: In 2002 Vencor settled a lawsuit from investors who claimed that Mr. Lunsford and other company officials sold stock in the company on the basis of insider information that was not shared with stockholders.
* Fact: Mr. Lunsford had no role whatsoever in the management or leadership of Kindred Healthcare, a company that sprung from the ashes of the bankrupt Vencor and which has flourished under new management.
There are many other serious issues that plagued Mr. Lunsford's tenure as CEO of Vencor that I won't take time to go into. They're all documented in Ralph Dunlop's profile of Mr. Lunsford that was published in last Sunday's Courier-Journal. We have copies of that article that you can take with you.
Also there are copies of a March 19, 2001 U.S. Department of Justice Press Release detailing the settlement of charges brought against Vencor under the False Claims Act. Please feel free to take a copy of this important public document.
Mr. Lunsford, obviously, would prefer that these issues were not discussed in this race. The fact that we're airing them has clearly struck a raw nerve. His campaign has accused us of false and misleading advertising -- a charge we flatly deny.
What's good for the goose, is good for the gander. And so as we examine misleading advertising, we have to question the veracity of advertising that Mr. Lunsford launched yesterday. In that advertising, Mr. Lunsford accuses this campaign of trying to mislead the public regarding his record. He also attempts to explain-away deficiencies in his record in a manner that we believe is misleading to the public.
In that advertising, Mr. Lunsford describes Vencor as One of the "Greatest Success Stories in the History of Business in Kentucky." The fact is, Vencor went bankrupt and was forced to settle a suit from stockholders who charged Mr. Lunsford and others with securities fraud.
We question the Lunsford advertising claim that Vencor protected patients. The fact is, Vencor had to settle claims with the federal government that it submitted false billing claims and had a well documented record of patient abuse.
We question the advertising assertion that Lunsford's company today employs 50,000 people, when the fact is Mr. Lunsford's company went bankrupt in 1999 and Mr. Lunsford has had no role in the leadership or management of Kindred Healthcare, the successful company that emerged from the bankruptcy.
You'll find the documentation of everything I've talked about today in the materials we have here on the table.... And which you're free to take with you.
In closing I'd like to say that we'll continue to campaign county to county throughout this state right up to the May 20 primary.
I'll continue to talk about bringing change to Washington. I'll continue to talk about my business record and my desire to go to Washington to represent the working men and women of this state. I'll continue to talk about the failures of Mitch McConnell's leadership and the way he's obstructed every attempt to solve the issues that matter most the people of Kentucky. And lastly.... I'll continue to shine a light and speak the truth about my opponents record so the voters of this state can make an informed choice.
At this point I'd like to ask Ken Shapero back up to introduce our guests today and after that we'll take your questions.
