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HHS Secretary vetting process drags on as Senate considers Daschle's tax violations

By Diana Manos , Contributing writer

The Senate Finance Committee's vetting process of former Sen. Tom Daschle (D-S.D.) for Secretary of Health and Human Services, hailed by industry insiders as a proponent of healthcare information technology, has hit a snag due to a recent discovery that Daschle failed to pay some of his taxes since 2005.

Since the news broke of Daschle's nomination Nov. 19, he has been hailed by many stakeholders as a good pick for HHS secretary because of his bipartisan negotiating capability and healthcare advocacy. President Obama also tapped Daschle to lead the transformation of the healthcare system as director of the White House office on healthcare reform.

Several healthcare leaders have supported Daschle to be the next HHS secretary. They urged Daschle, if he is confirmed, to focus on healthcare IT as a pivotal part of a U.S healthcare transformation.

H. Stephen Lieber, president and CEO of the Healthcare Information and Management Systems Society (HIMSS) said Daschle's book, "Critical: What We Can Do About The Health-Care Crisis" is an indicator of his commitment to healthcare and healthcare IT.   

"HIMSS believes Senator Daschle understands critical healthcare issues and how IT can be leveraged to improve the quality, safety, and efficiency of care," Lieber said. 

Lieber said HIMSS would work closely with the secretary-designate on securing additional funding for healthcare information technology as well as continuing current healthcare IT initiatives.

According to the Senate Finance Committee, Daschle recently filed amended tax returns for 2005, 2006 and 2007 reporting $128,203 in additional tax and $11,964 in interest. The adjustments resulted from additional income for consulting services and the use of a car service, and reductions in charitable contribution deductions.

Daschle filed the amended returns voluntarily after Obama announced his intention to nominate the senator to be HHS Secretary. The presidential transition team identified the charitable contribution issue and Daschle self-identified the income adjustments, a committee statement said.

A spokeswoman for Senate Finance Committee Ranking Member Charles Grassley (R.-Iowa) said the vetting process for Daschle has been handled in a confidential manner while committee members were apprised of the findings. But now, "the public's business ought to be public, and committee members must weigh all the facts of a nominee's record," Grassley's spokeswoman said.

The White House issued a statement last Friday acknowledging Daschle's tax violations and amended tax returns. President Obama has stood by Daschle.

The Senate Finance Committee met Monday evening to continue reviewing Daschle, with a vote expected sometime next week.