Associated Press HCA to Pay Feds $631M Settlement Wednesday December 18, 5:27 pm ET By Karin Miller, AP Business Writer
Hospital-Chain HCA to Pay Feds $631 Million to Settle Fraud
Allegations
NASHVILLE, Tenn. (AP) -- HCA, the nation's largest for-profit hospital chain,
agreed Wednesday to pay the U.S. Justice Department $631 million to settle
allegations of health care fraud, ending nearly a decade of federal
investigations.
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The settlement of the civil charges still needs formal approval from the
Justice Department and courts. But it would bring to $1.7 billion the amount
HCA has paid or agreed to pay the government in civil fines and criminal
penalties in recent years.
Whistle-blowers accused HCA of filing false claims for reimbursement from
Medicare and Medicaid and paying kickbacks to doctors so they would refer
patients to its hospitals.
Under the settlement, HCA, which operates 180 hospitals in 23 states and
England and Switzerland, did not admit to any wrongdoing.
"We are pleased to have successfully negotiated a settlement to the
remaining two civil issues," said Jack O. Bovender, Jr., HCA chairman and
chief executive.
James Thompson, a Texas doctor who filed a whistle-blower suit in 1995
alleging kickbacks and Medicare fraud, said the case cost him his health and
his practice. He said other doctors ostracized him, so he practiced alone
without a day off for three years, suffering a stroke in 1998.
"I said it then, and I'll say it again: Doctors have a duty to protect the
health of the community. They protect their patients first, and profits last,"
Thompson said. "I am proud of what I did, and I'd do it again. But I'm sure
glad it's over."
However, attorneys representing other whistle-blowers were not ready to
sign off on the settlement. The government has not detailed how the money will
be split up or how much will go to the whistle-blowers.
HCA pleaded guilty in 2001 to defrauding government health care programs
and paid $840 million that year in fines and settlements.
In the only case to go to trial, two former HCA executives -- Jay Jarrell
and Robert Whiteside -- were convicted in 1999 of conspiring to defraud the
government and making false statements with regard to a hospital in Port
Charlotte, Fla. The convictions were overturned this year on appeal.
Wall Street liked the news. HCA shares rose 3.4 percent, or $1.39 a share,
to close Wednesday at $42.90 on the New York Stock Exchange.
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