Fischer camp responds to ‘hypocrisy’ charges

Greg Fischer's campaign responded to the newest salvo fired in the Democratic Senate primary this afternoon.

Earlier today, Fischer was accused of "hypocrisy" by the campaign of opponent Bruce Lunsford for his investments in mutual funds with holdings including the successor companies of the nursing home chain Vencor. Vencor was founded by Fischer's opponent, Louisville businessman Bruce Lunsford, and allegations of impropriety there have been highlighted by Fischer in advertising campaigns against Lunsford.

"Bruce Lunsford is showing exactly what kind of Senator he would be in the United States Senate," said Fischer spokesperson, Ken Shapero. "This has the smell of Mitch McConnell all over it. This is exactly what kind of campaign Mitch McConnell would run."

"This is clearly designed to cloud the issue. He is attacking a straw dog. It's the same thing he tried to do to Ben Chandler," continued Shapero, referencing the 2003 gubernatorial primary campaign Lunsford quit amid a heated battle with Chandler.

Lunsford's campaign pointed to Fischer's investments in five mutual funds with holdings in Kindred Healthcare and Ventas - companies formed out of Vencor - as evidence of "hypocrisy" on Fischer's part. Those funds have over $26 million of their more than $46 billion in holdings tied into Kindred and Ventas.

Shapero said Fischer never chose to directly invest in Ventas nor Kindred, only in mutual funds with small holdings in those companies. He also argues Fischer never targeted Vencor's successors, only Vencor itself.

"Greg Fischer has never criticized Ventas and Kindred," said Shapero.

Fischer released an April 25 attack ad resurrecting allegations of financial improprieties at Vencor as well as allegations of patient abuse at some Vencor facilities. Those charges referenced the $104.5 million settlement with the Federal Government agreed to by Vencor in 2001 over charges of "overbilling" and "failure of care claims." Lunsford's campaign says that settlement entailed no admission of wrong-doing.

Prior to this settlement, Vencor split in two in 1998, becoming Vencor and Ventas. Lunsford resigned as CEO of Vencor shortly thereafter in January of 1999, yet stayed on with Ventas until 2003. Vencor declared bankruptcy in September of 1999. Amid re-organization and the settlement, it assumed the Kindred name in 2001.

Fischer did reference Kindred last Friday, when he attacked a Lunsford campaign ad defending Lunsford's business history amid Fischer's criticism of Vencor. The ad displayed text reading "Vencor ‘one of the greatest successes in the history of business in Kentucky,'" citing a 2007 article, while a voice announced that "Lunsford's company survived" amid Medicare cuts.

On Friday, Fischer targeted that sentiment, saying that "Mr. Lunsford had no role in the leadership or management of Kindred Healthcare" - the incarnation of Vencor at the time of the cited article's publication.

Shapero followed up on this line of dialogue today.

"[Lunsford] keeps wanting to tie himself to a company he doesn't have anything to do with" said Shapero.

Shapero also defended the campaign's tactics of attacking Lunsford's past - a path that has been criticized by some of the more prominent Democrats in the state.

"All we are trying to do is shine light on the public record of stuff that's been in a newspaper 1000 times," said Shapero. "We are trying to compare Greg Fischer and what he has accomplished to the public and private business affairs of Bruce Lunsford...If you compare them honestly, it's hard to imagine you could favor a candidate like Bruce Lunsford."

Shapero also addressed the charge that Fischer submitted his Personal Financial Disclosure late. Shapero confirmed this charge was true, and blamed it on a "clerical error" in the campaign office. He said the campaign had not been contacted about a fine for the report's tardiness.