Ex-LV hospital owner to pay $50,000

Monday, Dec. 20, 1999 | 12:05 p.m.

The former owner of Desert Springs Hospital in Las Vegas settled a state claim that it submitted inflated amounts for Medicaid reimbursements.

NC-DSH, a subsidiary of Quorum Health Group Inc., agreed to pay the state $50,000.

A spokeswoman for Nashville, Tenn.-based Quorum said the company is not admitting wrongdoing.

"We did absolutely nothing wrong," said Shea Davis, a Quorum vice president. She said the amount paid in the settlement was less than the expense of legal fees defending the company's position.

Tim Terry, director of the state's Medicaid Fraud Control Unit, said Quorum's response is a standard tactic.

"If they did nothing wrong, why would they pay $50,000?" he asked.

The Nevada Medicaid program reimburses hospitals for patient stays according to a formula, part of which is based on expenses disclosed in hospital cost reports. If that amount is improperly reported, the reimbursement level may be too high, Terry said.

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