Global Settlement Resolves U.S. Department of Justice Investigation Into Health Management Associates, Inc. and Related Affiliates
09/25/18
The settlement concludes the government’s investigations into whether
HMA and its affiliated hospitals billed
In reaching the settlement, the government noted that all conduct
reviewed in its investigation pre-dated the HMA acquisition, and that
following the acquisition,
The settlement includes a Non-Prosecution Agreement with HMA in which
the government agreed not to bring criminal charges against HMA, as long
as HMA and the Company abide by the provisions of the global settlement,
and also includes a guilty plea to one count of conspiracy to commit
healthcare fraud by
The global settlement includes a total payment of
Under the terms of the global settlement, the Company’s existing corporate integrity agreement (CIA) has been amended and extended. The extension begins immediately and effectively adds two years to the existing CIA, with the amended CIA now running through 2021.
Commenting on the resolution of the government’s investigation into HMA,
Additional background information
-
In
January 2014 ,Health Management Associates, Inc. was acquired by merger and became a wholly owned indirect subsidiary of the Company. - HMA was acquired following a volatile period in HMA’s history. At the time of the acquisition, HMA was facing multiple qui tam lawsuits and was the subject of criminal and civil investigations.
-
All of the allegations against HMA and its affiliates preceded the
January 2014 acquisition. Community Health Systems was aware of the HMA investigations before closing the transaction.-
Following the acquisition of HMA,
Community Health Systems worked cooperatively with the government in its investigation. -
The Company also took immediate steps to remove HMA’s Board of
Directors and senior executives and to integrate HMA affiliated
hospitals into the
Community Health Systems compliance program. The compliance program was voluntarily established more than 20 years ago and the Company has continuously strengthened the program.
Regarding Carlisle HMA
-
Carlisle HMA is the entity that previously owned and operated
Carlisle Regional Medical Center during the hospital’s affiliation with HMA. All of the allegations against Carlisle HMA occurred prior to the Company’s acquisition of HMA inJanuary 2014 . In 2017,Carlisle Regional Medical Center was divested to another healthcare organization which is not involved with, or party to, the settlement agreement.
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transactions, operating results, and other events are forward-looking
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referred to the documents filed by
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Source:
Community Health Systems, Inc.
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or
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or
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615-628-6607
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