CHRISTUS Response to Dallas Morning News Article

Some of you may have read the Dallas Morning News article published today about the candidacy of our previous CEO, Dr. Thomas Royer, for an interim CEO position at Parkland Hospital in Dallas. Unfortunately, that article mischaracterized the details regarding a settlement between CHRISTUS Health and the U.S. Attorney’s Office for the Central District of California last year. The truth about that agreement is included below, in a statement prepared by CHRISTUS Health in October of 2010.

On Sept. 30, 2010, CHRISTUS Health entered into a settlement agreement with the US Attorney’s Office for the Central District of California. The settlement agreement resolved outstanding issues for cost report years 1988 through 1994. The issues primarily dealt with the need to refund erroneous payments made by the fiscal intermediary to certain CHRISTUS Health facilities.

CHRISTUS Health cooperated fully with the government’s investigation, and continues to maintain that it did not engage in any wrongful conduct. This settlement agreement validates that position. In fact, most of the errors in question were actually identified by CHRISTUS Health through voluntary disclosures made in 2003.

The vast majority of the payments which are the subject of the settlement were the direct result of payment errors made by the fiscal intermediary. In addition, it is important to note that none of the issues which are the subject of this settlement had anything to do Healthcare Financial Advisors (HFA) or the allegations related to the HFA’s consulting services.

CHRISTUS Health will continue its steadfast efforts to operate within the Medicare regulatory framework while providing the highest quality of care to all those we are privileged to serve.