Nice Guy: IL Gov Tried to Shake Down Children's Memorial CEO

[12/12/08 addendum: According to the Chicago Tribune, the $8 million in state funds was intended for a pediatric-care intiative, We Care for Illinois Kids, a coalition that promotes increased state reimbursement rates for specialized pediatric care. The coalition supports Illinois HB5331, which stipulates that physician fee rates for the All Kids Insurance Program (the state's Medicaid program for children) must increase to competitive levels on January 1, 2009. The coalition indicates that pediatric specialists in Illinois currently receive only 33 cents for every dollar spent on Medicaid patients, one of the lowest Medicaid reimbursement rates in the country. The Children's Hospital of Chicago is the state's largest provider of inpatient, outpatient, and physician Medicaid services.] 

That evening, the governor instructed his fund chairman to contact a lobbyist (possibly Alonzo Monk) and to ask him what to do about Magoon not returning the phone calls. Blago also told the chairman to ask the lobbyist whether it was possible that Individual A (the FBI informant) had instructed Magoon to not call the fundraiser back. The governor was recorded saying, "What do we do with this guy, [Magoon]?" 

The next day, the fundraiser reported to Blago that he "had a call into" Individual A to talk about Magoon.

On November 14, the fundraiser told the governor that he had spoken with Individual A and that the governor needed to call Magoon. Blago indicated that he would do so. The complaint does not provide additional information regarding the governor's attempt to contact Magoon, and there is no indication that the hospital CEO was receptive to the contribution scheme.

In a statement released December 9, Children's Memorial Hospital indicated that it had "worked diligently to obtain funding from the State of Illinois...for the costs of providing much needed services to children covered by Medicaid." The statement continued, "Children's Memorial is very disappointed that the $8 million in Illinois funding...has been tied to an alleged pay-to-play scheme. Neither Children's Memorial nor any of its personnel participated in such a scheme." The hospital also indicated that it is cooperating fully with federal authorities.

An online source, campaignmoney.com, provides the following information regarding Magoon's contributions for the last several years—none of which appear to have gone to Blagojevich. (12/18/08 addendum: According to the Illinois Board of Elections, Magoon contributed the following to the Friends of Blagojevich: $500 on 9/18/02; $1000 on 7/24/03; $1000 on 6/09/04; $1000 on 6/29/06; and $1000 on 10/12/07—for a total of $4500.)

According to a Google-cached web page (curiously the link is not currently active at the Children's Memorial website), Magoon is chair-elect of the IL Hospital Association's board of trustees. The September press release also indicates that Magoon has been a member of the IHA's Policy Council, the Medicaid Reimbursement Task Force, and the All Kids Task Force. 

* According to the complaint, Individual A is an "associate" of Blagojevich and has assisted in campaign fundraising for the governor. The informant is hoping for immunity in exchange for his cooperation with the investigation. Notably the complaint indicates that the informant refused to wear a wire or participate in recorded phone calls with the governor. The informant is speculated by the Sun-Times to be John Wyma.