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EXHIBIT 20
FOR IMMEDIATE RELEASE For further information contact:
Shea Davis (615) 371-4737
Michael Wiley (615) 371-4735
QUORUM HEALTH GROUP, INC., ANNOUNCES
TENTATIVE AGREEMENTS IN TWO QUI TAM CASES
BRENTWOOD, TENN., Oct. 2, 2000) - Quorum Health Group, Inc.,
announced today it has reached understandings with the Civil Division,
U.S. Department of Justice to recommend agreements to settle two qui
tam lawsuits.
One case involves Medicare cost reports and a second primarily involves
allocation of costs at Flowers Hospital, Dothan, Ala., to its home health
services agency.
"The management and Board of Directors of Quorum continue to believe
that at all times the Company and its employees have operated in a proper and
ethical manner. Nevertheless we considered the amount of money and time the
Company has already expended in these matters and the additional resources
needed to take the cases to conclusions in court and decided these agreements
make business sense," said James E. Dalton, Jr., president and CEO, Quorum
Health Group, Inc.
The agreements are subject to negotiation of terms of settlement
agreements and corporate integrity agreements.
The tentative agreements call for the Company to compensate the
government approximately $95.5 million, with interest accruing at 7.25 percent
until resolution of final agreements.
The Medicare cost report settlement amount is approximately $77.5
million. The parties have agreed the settlement documents in the cost report
case will be completed within four months. Quorum said it expects to pay the
home health services settlement of approximately $18 million by the end of this
calendar year. An investigation at Flowers Hospital by the Company uncovered
alleged improper activities on the part of an employee, who was then terminated.
The Company reported immediately its findings to the proper authorities. The qui
tam suit involving home health issues was later filed by the former employee.
The Company cooperated fully with the government in its investigation of the
case.
"Quorum is a good company, with good people working here, many
since the Company was founded," said Dalton. "We continue to defend
the honor and integrity of our Company and associates. We have come to
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these understandings with all parties because we believe it is in the
best interest of our associates, our Company and our shareholders."
Quorum Health Group, Inc., owns and operates acute care hospitals
nationwide through its affiliates. Quorum Health Resources, LLC, a subsidiary,
is the nation's largest manager of not-for-profit hospitals and also provides
consulting services to hospitals.
This release contains forward-looking statements about the Company's current
expectations for paying certain settlement amounts. Actual results may differ
based on the timing of final settlements and agreements related to the two qui
tam lawsuits cited in this release. The Company's 10-K report addresses
additional considerations which may affect future performance.
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