RUSH TO JUDGMENT

Probe Of TCADA Contractors Finds More Smoke Than Fire

Whenever there are allegations that tax dollars are being misused, the
authorities have a duty to investigate. But a probe by the Texas Commission
on Alcohol and Drug Abuse of more than 100 contractors, including Riverside
General Hospital of Houston, revealed a large distance between allegations
and the truth.

At least, that was the finding of Earl Corbitt, a senior administrative law
judge with the State Office of Administrative Hearings, and other
investigators. Corbitt found that TCADA did not act in good faith before
terminating Riverside's contracts with the agency and labeled TCADA's
action against Riverside "arbitrary and capricious."

Riverside was among over 100 TCADA contractors targeted by state
investigators and auditors looking into allegations that more than $50
million of the agency's money had been misspent. A probe that took 20
months and cost $6 million yielded few indictments and found only $6.8
million in questionable spending, some of which is still in dispute.

For auditors, Riverside was a big fish. The hospital initially was alleged
to have misspent more than $7 million in TCADA funding. Investigators also
hired a private detective to look into the compensation of Riverside's
general administrator, Earnest Gibson. In the end, investigators came up
with zero on Gibson and found only $238,000 in suspect expenditures, which
the hospital is still defending.

The allegations that preceded this probe provide a classic case of rushing
to judgment, promising numerous felony indictments without proof. Once
again, the problems seem to lie in the TCADA's management, not in
contractors like Riverside.

Two years ago, TCADA achieved the dubious distinction of becoming the first
state agency in modern history to be placed under conservatorship. An
investigation of the agency's operations found proof of substantial fiscal
mismanagement, including possible theft of private, state and federal
funds. Many TCADA managers resigned or were fired.

TCADA's board has agreed to restore up to $1.6 million to Riverside this
year, pending reviews of the hospital's finances and programs. The hospital
wants TCADA to reimburse it for several million dollars in drug and alcohol
treatment programs provided after its contracts were terminated.
Considering the facts, TCADA should do all it can to make Riverside whole
again.

For Riverside, the nightmare is over. Now the historic facility in the
Third Ward can proceed with its mission of providing treatment for drug and
alcohol addicted patients without a cloud of suspicion hanging overhead.