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Cox Reaches Settlement with Dept. of Justice

After three years of investigation by the U.S. Department of Justice, CoxHealth has reached a settlement with the federal government. The investigation dealt with potential errors made by Cox regarding Medicare billing. KSMU's Megan Keathley has more.

CoxHealth has agreed to pay the U.S. government a total of 60 million dollars over the next five years. The settlement announcement comes after three years of investigation and talks with the Justice Department. CoxHealth President and CEO Robert Bezanson, along with counselors and other board members, spoke to the local media earlier today.

Bezanson emphasizes that the government investigation into his hospital dealt with Medicare billing regulations and physician compensation. Cox said in a statement that part of the mistake was due to the complexity of Medicare billing laws.

Stephen Hill serves as outside counsel for the CoxHealth hospital board. Hill asserts that Cox has not been charged with fraud.

In its statement to the press, Cox reports that in the past ten years, many other well-respected hospitals have undergone similar federal investigations, including Johns Hopkins University, Mount Sinai Medical Center, and the Mayo Clinic. CoxHealth also says that funds have been reserved by the hospital during the course of the investigation, and that the 60 million in settlement money will not come from the pockets of its patients.