- Tennessee-based Hospital Corporation of America (HCA) has lost a legal battle over whether it met its obligations since acquiring hospitals from the Health Midwest system, based in Missouri, in 2003.
- The deal had stipulated HCA would fund at least $450 million in capital improvements during its first five years of ownership.
- The Health Care Foundation of Greater Kansas City brought legal action in 2009, arguing HCA had failed to fulfill its commitments, resulting in the order last week for HCA to pay almost $434 million to the foundation, which was created by proceeds from the sale of the hospitals.
The judge determined HCA remained liable for the promised capital and charitable contributions agreed upon during the acquisition.
However, the issue is not yet at rest because the HCA plans to appeal the decision, HCA spokeswoman Christine Hamele told KCUR, and the process of appeal could take several years.
The order declared HCA liable for:
- $239.4 million for hospital improvements;
- $167.1 million for prejudgment interest; and
- $27 million for legal fees and expenses.