Plano, Texas-based LifeCare Holdings and Birmingham, Ala.-based HealthSouth have agreed to drop HealthSouth Hospital of Houston from its proposed acquisition due an investigation of HHH by the Officer of the Inspector General, according to a LifeCare news release.
On June 24, HealthSouth received a subpoena from the Department of Health and Human Services' OIG regarding its hospital in Houston, according to a Securities and Exchange Commission report. The subpoena was in connection with an investigation of possible false Medicare and Medicaid claims as well as document requests of HHH's patient admissions, length of stay and discharge matters.
Consequently, LifeCare and HealthSouth have dropped HHH in order to give "the best opportunity to move forward with the transaction in a timely and efficient manner," the release said.
LifeCare originally planned to buy six of HealthSouth's long-term acute-care hospitals for $120 million, according to the May announcement. LifeCare will now pay $117.5 million at closing for the five hospitals and still plans to close on the deal during the third quarter of 2011, the release said.
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On June 24, HealthSouth received a subpoena from the Department of Health and Human Services' OIG regarding its hospital in Houston, according to a Securities and Exchange Commission report. The subpoena was in connection with an investigation of possible false Medicare and Medicaid claims as well as document requests of HHH's patient admissions, length of stay and discharge matters.
Consequently, LifeCare and HealthSouth have dropped HHH in order to give "the best opportunity to move forward with the transaction in a timely and efficient manner," the release said.
LifeCare originally planned to buy six of HealthSouth's long-term acute-care hospitals for $120 million, according to the May announcement. LifeCare will now pay $117.5 million at closing for the five hospitals and still plans to close on the deal during the third quarter of 2011, the release said.
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