Settlement talks heat up for big Las Vegas hospital operator

Wednesday, Nov. 24, 1999 | 10:57 a.m.

Columbia/HCA Healthcare Corp., a major hospital operator in the Las Vegas Valley, is said to be nearing a settlement in its legal fight with the federal government over alleged Medicare fraud.

Today's Wall Street Journal reported that Nashville, Tenn.-based Columbia is expected to reach a settlement on at least some issues within a few weeks, resulting in an initial payment by Columbia of several hundred million dollars. The settlement is eventually expected to cost Columbia in excess of $1 billion.

"The dialogue has gotten hotter," said Marlan Wilbanks, an attorney involved in the Columbia settlement talks. "The potential for settlement on key issues is very real."

The probe of Columbia, launched six years ago, has focused on allegedly illegal and improper activities by Columbia in its Medicare billing. Some of the charges include false billing for laboratory tests, financial rewards to physicians for admitting patients to Columbia hospitals and charging the government for costlier care than what was provided to patients. The investigation is the largest Medicare probe in history.

Columbia operates Sunrise Hospital and Medical Center and MountainView Hospital, both in Las Vegas.