Charlotte, N.C.-based Carolinas HealthCare System has reached an out-of-court settlement with Mecklenburg County in North Carolina, resolving a lawsuit the system filed in July, according to a Charlotte Business Journal report.
Carolinas HealthCare sued the county, alleging a breach of contract related to the county's decision to cut about $16 million in funding that went toward indigent care.
In March, a judge ruled that Mecklenburg County had no obligation to pay subsidies to Carolinas HealthCare for charity care. https://www.beckershospitalreview.com/legal-regulatory-issues/judge-county-has-no-obligation-to-fund-carolinas-healthcares-charity-care.html Yesterday, the system said it will drop the suit and release the county from claims for indigent-care funding.
In exchange, the county will transfer ownership of a behavioral health hospital, CMC-Randolph, to Carolinas HealthCare so the system can continue operating the facility. Details on that transaction are still being finalized, according to the report.
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Carolinas HealthCare sued the county, alleging a breach of contract related to the county's decision to cut about $16 million in funding that went toward indigent care.
In March, a judge ruled that Mecklenburg County had no obligation to pay subsidies to Carolinas HealthCare for charity care. https://www.beckershospitalreview.com/legal-regulatory-issues/judge-county-has-no-obligation-to-fund-carolinas-healthcares-charity-care.html Yesterday, the system said it will drop the suit and release the county from claims for indigent-care funding.
In exchange, the county will transfer ownership of a behavioral health hospital, CMC-Randolph, to Carolinas HealthCare so the system can continue operating the facility. Details on that transaction are still being finalized, according to the report.
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