PRESS RELEASE
June 26, 2008
Lexington, Ky. —The University of Kentucky and the United States Attorney's Office for the Eastern District of Kentucky today announced the settlement of a civil disagreement involving the Lexington Veterans' Administration (VA) Medical Center and the University of Kentucky over contractual and related obligations for the provision of medical care by UK faculty and residents at the Lexington VA Medical Center. The United States Attorney’s Office was assisted in this matter by the VA Office of Inspector General which provided investigative and audit services.
The University, as part of its affiliation with the Lexington VA Medical Center, provides a substantial number of medical faculty and residents to support the Lexington VA facility each year.
For certain periods prior to Jan. 1, 2004, representatives of the United States government claimed that their documentation did not substantiate that the VA had received all of the services to which it was entitled. However, the University contended that all required services were, in fact, provided during the period in question.
After substantial review and negotiation, the University agreed that it would, through its support organization, Kentucky Medical Services Foundation, Inc. (KMSF), reimburse the VA $3 million to resolve the dispute.
The settlement relates to a disagreement involving the accounting of documented time and does not involve quality of care issues.
Under the settlement, the parties will exchange mutual releases. The settlement is neither an admission of liability or wrongdoing by the University or KMSF nor a concession by the United States that its claims are not well founded. Rather, the parties are entering into the settlement to avoid protracted litigation.
Over the last four years VA has been satisfied with the services delivered by the part-time physicians.
Both the University and the Lexington VA Medical Center look forward to a continued affiliation to deliver high-quality care to the veterans of this region in an academic medical center setting.