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PRESS STATEMENT

U.S. REACHES TENTATIVE SETTLEMENT WITH QUORUM HEALTH GROUP

WASHINGTON, D.C. - The Justice Department has reached a tentative agreement with Quorum Health Group Inc., that would resolve allegations that the company submitted false claims for Medicare cost reimbursement. In February 1999, the Department filed a complaint alleging that Quorum and its subsidiaries caused the submission of false claims for Medicare cost reimbursement by filing with fiscal intermediaries for the Health Care Financing Administration false and inflated Medicare cost reports on behalf of Quorum's owned and managed hospitals.

The Department has had discussions with the company about resolving this lawsuit and, if the tentative agreement is formally approved by the Department, the lawsuit would be resolved. Any formal agreement must be authorized by appropriate Department officials in consultation with other agencies. We have no further comment on ongoing discussions between the Department and Quorum.

The lawsuit is entitled United States ex rel. James F. Alderson v. Quorum Health Group, Inc., et al., No. 99-413-CIV-T-23B (M.D. FL)

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