Kansas City's largest healthcare network, HCA Midwest Health, will pay a local healthcare foundation $15 million to settle allegations that it didn't provide the level of charitable and uncompensated care to the community that had been required by a 2003 purchase agreement.
HCA announced the settlement with the Health Care Foundation of Greater Kansas City Wednesday. HCA did not admit to any wrongdoing in the settlement.
“While we remain steadfast in our belief that the company fully satisfied and exceeded its charity and uncompensated-care obligations, we are a part of this community, and as a leading healthcare provider, we continue to provide tens of millions of dollars in free or uncompensated care every year,” said M.L. Lagarde, president and CEO of HCA Midwest Health, in a statement. “This resolution provides additional funds for the benefit of the healthcare needs of Kansas City's uninsured and underserved population.”
Kenneth Southwick, chair of the foundation's board of directors, said, in a statement, the foundation will use the money “to continue our mission of improving health for the uninsured and underserved in the Kansas City community.”
At issue was whether HCA had met its contractual obligation to provide at least $653 million in charity and uncompensated care between 2003 and 2013.
The foundation was created with proceeds from the sale of Health Midwest to HCA in 2003 for more than $1 billion. The foundation had accused HCA Midwest of failing to meet the charitable-care requirements established as part of the asset purchase agreement.
A dispute between HCA and the foundation over capital spending in connection with HCA's purchase of the Health Midwest facilities remains ongoing.
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