Confusion Reigns
It was during this time of complete confusion that clinic officials had not had time to think about the signing of the contract back in June. Most had forgotten about and had not realized that the clinic did not have a copy of it. Besides, OLCHC employees were told by welfare officials to screen children similar to the manner in which they were screened before the "new system" was put into effect.

However, under the "new system", the number of children the clinic was screening a month, dropped from the June high of 344 (just before the introduction of SAMI 25's) to 195 in August.

It was not until mid August that clinic employees discovered that Renee Grandieri, (OLCHC, R.N..) had a copy of the existing contract. Grandieri brought to the attention of Dr. Ice at that time, that the new contract called for the SCREENING provider to sign SAMI 25's. Dr. Ice informed Renee that forthwith, they should comply with the contract.

Gene Combs, an investigator for the State Welfare Department, testified at the injunction hearings the following:
"In July, OLCHC screened 169 eligible children. Of the 169, only one SAMI 25 was signed by the nurse. All the others were signed by Ice.
"In August, 164 screenings were performed by OLCHC. Of these 164, 139 were billed at the nurse rate of 20 dollars and only 25 at the M.D. 30 dollar rate."

These statistics seem to prove that it was sometime in August when OLCHC realized the requirements under the new contract and took the necessary corrective action.

On October 25, 1976, Operation Life Community Health Center and, specifically, Dr. Ice, received word from George Miller that the current contract that Ice had with NSWD was to be terminated as of November 25, 1976. Thus making Thanksgiving Day its last operational day for screenings. Along with the cancellation of the contract, Miller filed charges that Operation Life had fraudulently, maliciously billed the state for the 30 dollar physician rate 975 times when they should have been billed for 20 dollars. (See introduction)