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Hutchinson Regional Reaches Settlement Agreement with Department of Justice

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Hutchinson Regional Medical Center 3

*Note, Earlier on Tuesday, we posted information on Hutchinson Regional Medical Centers agreement with the Department of Justice, over false claims to medicare based on information released from U-S Attorney Barry Grissom. Late Tuesday Afternoon, officials at Hutchinson Regional released a response to the allegations, investigation and settlement. The news release as sent is below. We did not edit the information

After nearly two years of investigation, Hutchinson Regional Medical Center (HRMC) reached a settlement agreement with the U.S. Department of Justice to settle allegations of wrongdoing related to the hospital’s hyperbaric oxygen therapy services.

Although these events took place prior to the current hospital administration, the current Board of Directors and hospital administration cooperated fully throughout the Justice department’s investigation and deny any intentional wrongdoing.

“We very much appreciate that the government worked with us to resolve this matter amicably,” said HRMC President and CEO, Kevin Miller. In order to avoid the uncertainty, inconvenience, and expense of protracted litigation, HRMC has decided the settlement agreement is the best course.

Although HRMC contends there was no intent to commit fraud or to provide illegal kickbacks, the hospital acknowledges that during the period in question, there were unintentional documentation errors that affected the hospital’s compliance with certain billing rules. At no time, however, was there any compromise to patient safety or the quality of care provided. Additionally, the HRMC Wound and Hyperbaric Center is no longer affiliated with the previous management company or physician provider.

“We were frankly quite embarrassed when these deficiencies were identified and as a result, HRMC has taken steps to prevent them from ever happening again,” said Bruce Buchanan, who was chair at the time the board became aware of the investigation.

Since the allegations came to light, HRMC proactively conducted a thorough review of its billing, documentation, and other business systems in an effort to correct any compliance deficiencies.

HRMC has also dedicated significant resources to creating a comprehensive compliance program, including hiring a full-time compliance officer, creating a multi-disciplinary compliance committee, developing and implementing a number of new compliance policies and procedures, establishing an anonymous compliance reporting hotline, providing mandatory compliance training for all employees and physicians, and conducting external compliance audits on a regular basis.

Furthermore, HRMC has voluntarily agreed to enter into a Corporate Integrity Agreement (CIA) with the Office of the Inspector General (OIG) of the Department of Health and Human Services.

The CIA will greatly enhance the hospital’s already well-developed compliance program. HRMC looks forward to working with and learning from the OIG in refining and improving its compliance program even more.

HRMC is fully committed to providing the highest quality care to its patients and to conducting its business in full compliance with all laws, rules, and regulations as well as the highest of ethical standards.


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