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Scully Resigns, Joins Alston & Bird; Smith Named Acting CMS Head

Baltimore After three years at the helm of the Centers for Medicare and Medicaid Services, Administrator Tom Scully resigned on Dec. 15 and has joined

Baltimore

After three years at the helm of the Centers for Medicare and Medicaid Services, Administrator Tom Scully resigned on Dec. 15 and has joined Alston & Bird's Washington, D. C., law practice.

U.S. Department of Health and Human Services Secretary Tommy Thompson named Dennis Smith, director of the agency's Center for Medicaid and State Operations, as interim CMS administrator. At the same time, Thompson said Leslie Norwalk will remain in her position as deputy administrator and chief operating officer at CMS, and will continue to be the CMS lead in carrying out new Medicare reform legislation.

Scully's resignation became effective shortly after President Bush signed The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 on Dec. 8. “Watching the President and Secretary Thompson drive the Medicare bill across the finish line in the last few weeks was a very rewarding culmination to a very exciting and fulfiling three years,” Scully said. “I've been working on [Medicare reform] for 15 years, and that's one of the reasons [why] I came back into government.”

Scully said he feels he left his mark on CMS by making the agency more responsive to consumers and removing the “impenetrable bureaucracy” of years past — along with accomplishing one of his top priorities, Medicare reform.

In a press release, CMS named various highlights of Scully's tenure, including:

  • Strengthening CMS' fiscal responsibility by closing a multi-billion dollar loophole in Medicare for hospital outlier payments, rationalizing payments for rehabilitation services and, most recently, cracking down on fraudulent billing for power wheelchairs;

  • Creating quality reforms in both the home health and nursing home sectors in partnership with unions, patient advocacy groups, the AARP and providers; and

  • Serving as a key member of the President's team involved in crafting a Medicare reform framework more than a year ago.

Scully's departure came as no surprise to many as rumors surfaced early last year that he was looking to leave for the private sector. As CMS administrator, Scully made $134,000 a year; in the late 1990s, as president of the Federation of American Hospitals, he made $675,000 a year, the New York Times reported.

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