Parkland Settles Again
Parkland Hospital pays U.S. government $1.4 million to settle Medicaid fraud claims
Beleaguered Parkland Memorial Hospital has agreed to pay $1.4 million to settle claims it committed Medicaid and Medicare fraud for "physical medicine and rehabilitation services" dating back to 2007. Dr. Lien Kyri filed a whistleblower lawsuit against the hospital in 2010, prompting the federal government to join the case.
In a statement released May 22, Parkland announced it has entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health & Human Services. The plan addresses compliance, ethics, clinical quality and patient safety as well as establishing annual reporting procedures.
"We consider this proposed settlement a fair resolution that allows Parkland to continue moving forward with the improvements we have been making in the areas of quality and patient safety," said interim chief executive officer Robert L. Smith.
This is the latest in a series of settlements for alleged fraud at Parkland, though the hospital has never admitted wrongdoing.
In August 2012, Parkland reached an unprecedented $1 million settlement with the Department of State Health Services for patient safety claims. The largest hospital fine previously levied by the entity was $50,000.
In September 2011, Parkland paid $1.4 million to settle a whistleblower lawsuit brought by Dr. Larry Gentilello. The former distinguished chair in surgery for trauma and critical care was demoted and stripped of all responsibilities shortly after filing the lawsuit in 2007. He later sued for retaliation, but his case was dismissed by the Texas Supreme Court on a technicality.