On March 10, 2014, the parties to U.S. ex rel. Baklid-Kunz v. Halifax Hospital Medical Center et al. entered into a Settlement Agreement to the resolve the claims in the United States’ Complaint in Intervention in this matter. Under the terms of the Settlement Agreement, Halifax must pay the settlement amount of $85 million by March 20, 2014. Moreover, Halifax also will enter into a Corporate Integrity Agreement as part of the settlement. Upon receipt of the settlement amount, the parties will file a Joint Motion for Dismissal With Prejudice of the United States’ Complaint in Intervention.
As indicated by both the Notice of Potential Settlement and this Settlement Agreement, the settlement only covers conduct included in the United States’ intervened claims; that is, the settlement covers the claims based on Halifax’s liability arising under the Stark Law with respect to employment agreements with the medical oncologists and the neurosurgeons named in the Complaint. The Settlement Agreement also reflects that the relator, Ms. Baklid-Kunz, is to receive 24.5% of the $85 million settlement amount.
Click here to access the Settlement Agreement.