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 required by a 2003 purchase agreement.
HCA announced the settlement with the Health Care Foundation of Greater Kansas City last week. HCA did not admit to any wrongdoing in the settlement.
At issue was whether HCA had met its contractual obligation to provide at least $653 million in charity and uncompensated care to the community between 2003 and 2013. The foundation was created with proceeds from the sale of Health Midwest to HCA for more than $1 billion in 2003. The foundation accused HCA Midwest of failing to meet the charitable-care requirements established as part of the asset-purchase agreement.
“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, HCA Midwest Health's CEO, in a written statement. “This resolution provides additional funds for the benefit of the healthcare needs of Kansas City's uninsured and underserved population.”
A dispute between HCA and the foundation over capital spending in connection with HCA's purchase of Health Midwest facilities continues.