Yavapai Regional Medical Center (YRMC) recently finalized an agreement in principle to settle with the U.S. Department of Justice regarding allegations that YRMC failed to repay the federal government for alleged overpayments that were caused by an error in its Medicare Cost Reports.  The cost reports at issue were for fiscal years 2006 through 2009 during the tenure of YRMC’s former Chief Executive Officer and Chief Financial Officer. 

Hospital spokeswoman, Robbie Nicol, said, “As soon as we knew of this allegation on July 20, 2016, we immediately took action and, working collaboratively with the federal government, we were able to quickly reach an agreement in principle to resolve the issue.  Neither YRMC nor any of its current or former employees admitted any wrongdoing, nor has the government asked us to do so.”

Nicol continued by saying, “It’s very important to emphasize that the allegations were not related to the quality or type of care provided to patients.”

Nicol also said, “It is equally essential to emphasize that the error did not affect any Medicare patient’s individual out-of-pocket costs for deductibles, co-pays, etc.  The error had already been corrected in 2010, which is long before the recent notification we received from the government.”

YRMC has cooperated fully with the federal government’s investigation and the parties have reached an agreement in principle on a settlement of $5,850,000.  The settlement is a one-time cost.

YRMC agreed to settle with the government to avoid the costly burden of a lawsuit. This settlement allows YRMC to devote its undivided attention to providing quality care to the residents of our entire community.

Nicol said, “This matter is certainly no reflection at all on the outstanding patient care our YRMC staff provides nor is it a reflection on the hundreds of other staff members whose roles are to support patient care.  YRMC staff members are dedicated to their patients and their work.  They take great pride on the impact they have in the lives of people throughout our wonderful community.”

Nicol added, “All of us in the YRMC Family are honored to work in healthcare and fulfill YRMC’s Mission.  We touch lives every single day.  It’s a privilege to work with all the people here and I’m proud of everyone’s dedication and professionalism.”