Banner Health, Phoenix, has agreed to pay $2.9 million to settle claims raised by South Dakota Attorney General Larry Long on the proceeds of Banner's sale of seven hospitals and nursing homes. Banner will pay $1.8 million to five healthcare foundations and $600,000 to the three hospitals that bought the facilities in 2002. Banner also agreed to forgive about $500,000 in debts and obligations associated with the nursing homes. Long claimed that the assets from the sales belonged in the communities that supported the facilities. Banner spokesman Dan Green said the settlement was fair. "We felt we were on solid legal ground, but it would have been a long and protracted litigation," he said. The not-for-profit system paid $1 million in North Dakota and $8.5 million in New Mexico to settle similar lawsuits. -- by Patrick Reilly
Banner, S.D. settle sales proceeds dispute
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.