Delores L. Galias, RN, RHIT

STATEMENT OF CONFIDENTIALITY:
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FOR IMMEDIATE RELEASE
CMS Public Affairs
December 3,
2003

CMS ADMINISTRATOR TOM SCULLY TO STEP DOWN DEC. 15

CMS Administrator Tom Scully announced today he will resign effective
Dec. 15, following three years at the helm of the nation's second and
third-largest domestic programs, Medicare and Medicaid.

"It has been a great run, and has been great fun working with, and
learning from, Secretary Thompson, who has been a great friend and
mentor," said Scully.  "Watching the President and the Secretary
drive the Medicare bill across the finish line in the last few weeks was
a very rewarding culmination to a very exciting and fulfilling three
years.  I have loved every minute of this job and am grateful to the
President for the opportunity to serve."

Scully became the ninth administrator of the agency formerly known as
the Health Care Financing Administration on March 22, 2001.  He led an
intensive effort to improve the responsiveness of the agency, with a new
name, adopted from suggestions made by agency employees.  He also
significantly expanded efforts to inject quality measurement into the
agency's programs.

"Tom Scully is leaving a different agency from the one he took over
in 2001, an agency that has been reenergized by his leadership," said
HHS Secretary Tommy G. Thompson.  "He also made crucial contributions
in the effort to bring about the President's vision of a modernized
Medicare, and he helped ensure that future beneficiaries will be served
by a better and stronger program."

Other highlights of his tenure include:

*     Expanding beneficiary education efforts by making 1-800-MEDICARE
a 24/7 service with detailed information for beneficiaries, and raising
awareness through large scale advertising.

*     Serving as a key member of the President's Medicare reform
team, who was involved in crafting the President's Medicare Framework
over a year ago, and in working with Members of Congress on a bipartisan
basis to bring about the biggest improvement in the program since 1965.

*     Rationalizing the federal relationship with states and reigning
in program loopholes that had eroded the federal/state partnership.

*     Strengthening CMS's 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.

*     Opening up the Agency by establishing open door forums and making
it clear that Medicare and Medicaid would be reliable business partners
for providers and contractors that follow the rules.

*     Creating sweeping quality reform initiatives in both the nursing
home and home health sectors in partnership with unions, patient
advocacy groups, the AARP and providers to develop broad based quality
measures that help consumers and providers monitor and improve
performance.  These outcomes were published in ads in every major
newspaper in the U.S.  A similar hospital quality system is under
development, and has been incorporated in the new Medicare legislation.

"Much of what Secretary Thompson and I have done is very consistent
with the themes of Medicare reform.  If you measure performance and give
consumers information, it drives positive change.  If you give seniors
better coverage options, like PPOs, and the information to understand
them, they will make the right call.  We have taken the first steps to a
more consumer-responsive health system," said Scully

Scully did not immediately identify future plans.  An acting
administrator will be named prior to Dec. 15.


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