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Justice Department Reaches Nearly $41 Million Settlement With King's Daughters Medical Center

Reported: May. 28, 2014 2:42 PM EDT
Updated: May. 29, 2014 3:45 PM EDT
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ASHLAND, Ky. (Jeff Morris) – The U.S. Attorney’s Office announced a $40.9 million settlement has been reached with King’s Daughters Medical Center in Ashland, Ky.

The hospital said in a news release the action is related to an investigation into the hospital's cardiac program.

The U.S. Attorney’s Office said it has made a series of settlements in health care fraud cases, including King’s Daughters, and the agreements result from a reorganization of investigative and prosecutorial resources within the U.S. Attorney’s Office to focus on health care fraud.

U.S. District Attorney Kerry Harvey wouldn't comment as to whether any criminal action would be taken against those involved.

"The hospital has made a commitment to have a complete understanding of the circumstances and we will see where that takes us," Harvey said.

“Health care fraud has been a Department of Justice priority for several years, and our office has made it a priority as well,” U.S. Attorney for the eastern district of Kentucky Kerry Harvey said. “There is a tremendous amount of taxpayer money in federal health care programs like Medicare and Medicaid being spent in the Eastern District of Kentucky. Where there are signs that health care providers have obtained taxpayer dollars through fraud or other forms of abuse, it is our responsibility to investigate those allegations and recover those funds to the fullest extent allowed by the evidence and the law.”

The hospital released a statement regarding the settlement.

“The Medical Center's leadership team made the difficult decision to settle the investigation, rather than continue to drain valuable resources on government allegations related to old cases. The settlement is not an admission of wrongdoing on behalf of the Medical Center,” the hospital statement said.

Danny Selvage is a patient at Kings Daughters. He had a heart procedure not too long ago. Selvage says this doesn't look good for the hospital he's always trusted.

"No, I wouldn't come here period but I cant do that."



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