Daytona Beach, Fla.-based Halifax Health won't seek to merge with another healthcare provider to cope with its legal troubles, according to a report from The Daytona Beach News-Journal.
John Johnson, chairman of the Halifax Health board of commissioners, said at a meeting Monday that the 678-bed health system will retain its current public designation, despite some hospital finance experts' suggestions to merge with another for-profit or nonprofit healthcare provider, according to the report.
Halifax Health has spent more than $22 million in legal fees so far fighting a massive whistleblower lawsuit filed in 2009. The suit — filed by Elin Baklid-Kunz, director of physician services at Halifax — alleges the health system admitted patients inappropriately, allegedly billing Medicare for their services and having financial relationships with physicians that allegedly violated federal antikickback laws. The Department of Justice joined the case in 2011, supporting some of the allegations of Stark Law violations.
U.S. District Judge Gregory Presnell agreed to split the case into two trials. In March, Halifax Health settled the first portion of the whistleblower suit for near $85 million. The second trial is scheduled for July and could result in damages plus penalties that could reach $400 million.
More Articles on Halifax Health:
Halifax to Institute Internal Monitoring as Part of $85M Settlement
Halifax Health's Legal Fees Hit $21M Mark
Judge: Halifax Didn't Violate Anti-Kickback Statute With Physician Bonuses