PRESS STATEMENT RE: HCA

For a number of years, the Department, working with private whistleblower-plaintiffs and their attorneys, has been in litigation with HCA (the former Columbia/HCA Healthcare Corporation) concerning its billing practices and conduct with respect to its charging of Medicare, Medicaid and other federally funded health care programs. This litigation has included allegations of overcharging the government on HCA's cost reports, payment of kickbacks and other improper remuneration to physicians in exchange for referral of patients, and overcharging in connection with the company's agreements for management of its wound care facilities. During this time we have had discussions with HCA about resolving this civil litigation. The staff assigned to this matter has now reached a tentative understanding with HCA for a settlement of $631 million. If formally approved, this settlement would resolve the litigation as well as HCA's administrative liability to the Centers for Medicare and Medicaid Services for an additional $250 million, but would be conditioned on a number of future events. Any formal agreement must be authorized by appropriate Department officials in consultation with the affected agencies. When added to the prior civil and criminal settlements reached in 2000, this settlement would bring the government's total recoveries from HCA to approximately $1.7 billion.

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02-731