Wednesday, February 8th, 2012

 

Blago Prosecution Plans To Rest Case Tuesday

The government will likely rest its case on Tuesday, prosecutors have indicated to Judge James Zagel. If that happens, Rod Blagojevich’s defense team could begin to call their witnesses as early as Wednesday morning.

Former Deputy Gov. Bob Greenlee finished Thursday on the stand talking about Children’s Memorial Hospital, which is considered critical to the government’s case against Blagojevich. Prosecutors have accused Blagojevich of withholding state money for the hospital in exchange for a campaign contribution from its CEO.

Greenlee told jurors that in late summer 2008, he was contacted by lobbyist and Blagojevich confidante John Wyma about meeting with hospital officials.

About a month later, Greenlee set up a meeting with the hospital’s CEO, Patrick Magoon. It took place at the Thompson Center, and included Greenlee, Magoon, Wyma, and Barry Maram, director of the Illinois Department of Healthcare and Family Services.

Magoon brought up two issues at the meeting: He was looking for a state grant to help build a new wing of the hospital, and he was looking for an increase in the rates hospitals were allowed to charge for Medicaid programs.

Greenlee directed Maram to crunch the numbers to figure out how to allow for a rate increase. In late September, Greenlee testified, he spoke with Blagojevich about the rate increase.

“He called me out of the blue and asked me if I had met with Children’s memorial hospital about rate increases,” Greenlee said in court on Thursday.

Greenlee told him he though it was a good idea, but it needed to be put in context of the broader state budget. Blagojevich wanted to move forward with rate increases, Greenlee said, to be effective by Jan 1., 2009. The increase was expected to cost between $8 and $10 million, a drop in the bucket of the state’s overall Medicaid budget.

Later, however, Greenlee said Blagojevich told him to back off the rate increase, citing budgetary concerns. Greenlee told jurors that, in his experience, the governor had never stalled a healthcare initiative for budget reasons before.

“I didn’t know why I was being asked for this not to move forward,” Greenlee said, in explaining his mindset at the time, “but I knew it wasn’t the budget.”

The trial has adjourned for the week. Greenlee will continue on the stand Monday, after which the government is expected to call Wyma and Magoon before resting its case.

 
 
 

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