King's Daughters Medical Center has finalized a settlement with the U.S. Justice Department that resolves allegations that it performed unnecessary cardiac procedures and had inappropriate financial relationships with referring physicians.
The Ashland, Ky.-based hospital, the largest in the state, had disclosed in its 2013 annual report that it was in negotiations for the $40.9 million 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 hospital said in a statement. “The settlement is not an admission of wrongdoing on behalf of the medical center.”
The statement also pointed to a number of programs that have recognized King's Daughters' cardiac program for meeting or exceeding national standards.