Dive Brief:
- Hospital Corporation of America is planning to appeal a $434 million judgment that it failed to meet obligations since purchasing Missouri-based Health Midwest in 2003.
- Among HCA’s grounds for the appeal is it fulfilled a promise to make $450 million in improvements by constructing new hospitals in Torrence and Lee’s Summit, reports KCUR in Kansas City.
- The Health Care Foundation of Greater Kansas City filed the lawsuit in 2009, alleging HCA hadn’t fulfilled its commitments.
Dive Insight:
The healthcare giant has filed a notice with the Missouri Court of Appeals of its plan to challenge the December 2015 decision, citing five grounds for appeal, according to KCUR. They include the Health Care Foundation lacked legal standing to sue and it had failed to prove the alleged transgression actually hurt anyone.
HCA paid more than $1 billion in 2003 to acquire a dozen hospitals and clinics from Health Midwest, a nonprofit healthcare system. In addition to the capital improvements, the $1.125 billion sale agreement called for HCA to pump $500 million into charitable and uncompensated care.
The foundation was one of two created with proceeds from the deal to support organizations that provide care for patients who lack health insurance. The other was the REACH Foundation in Kansas.