Judge Orders HCA to Pay Health Care Foundation $161.9M
Kansas City Business Journal report.
In 2009, HCF filed a lawsuit against HCA's Kansas City arm, HCA Midwest Health System, claiming it built new hospitals — Lee's Summit (Mo.) Medical Center and Centerpoint Medical Center in Independence, Mo. — rather than following through on improvements to Health Midwest facilities as was promised in a 2003 sale agreement. HCF was created from proceeds of the Health Midwest sale to fund community health programs.
According to the report, HCA was supposed to contribute $450 million to Health Midwest over five years. If HCA failed to do so, it was supposed to pay the shortfall to the foundation. HCA and HCF have disagreed on how to interpret this element of the agreement.
Even though the judge has ordered HCA to make an immediate payment, HCA plans to appeal the ruling. It believes it upheld the agreement by maintaining high-quality care for the community by building two new hospitals rather than putting money into repairs on old facilities, according to the report.
More Articles on Lawsuits:Montana Bill Would Protect Medical Homes From Antitrust Suits
Judge: WakeMed's Settlement Proposal Too Small for False Claims Allegations
Jackson Purchase Medical Center Settles False Claims Charges With $850k
© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.
New from Becker's Hospital Review