ENVISION HEALTHCARE CORPORATION (NYSE:EVHC) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On December 19, 2017, Envision Healthcare Corporation, a Delaware corporation (the “Company”), and certain of its subsidiaries agreed to a final settlement with the United States Department of Justice (the “D.O.J.”) to resolve the previously disclosed D.O.J. investigation into physician services provided by the Company’s EmCare subsidiary at hospitals affiliated with Health Management Associates, Inc. The Company agreed to pay approximately $31 million to resolve all federal government civil claims related to this matter, avoiding further expense and potential distraction from protracted litigation. The Company’s settlement of the federal government’s claims does not constitute an admission or determination of improper conduct in the matter. In connection with the resolution of this matter, the Company has agreed to enter into a Corporate Integrity Agreement (the “Agreement”) with the Office of Inspector General of the Department of Health and Human Services (the “O.I.G.”), which is customary at the conclusion of many government healthcare investigations.
The Agreement provides that the Company will maintain, over a five-year term, a corporate compliance program with oversight of its emergency department and hospitalist medicine physician service lines that includes oversight, reporting, policy, screening and monitoring obligations, certain of which have been previously implemented through the Company’s existing compliance program. Among the expanded requirements to be implemented to the Agreement are the following: (i)additional contracting procedures to comply with the federal Anti-Kickback Statute, (ii)independent review of emergency and hospitalist medicine facility contracting, (iii)notification to the O.I.G. of government investigations or legal proceedings, and (iv)reporting of overpayments and other "reportable events" (as defined in the Agreement). The Company will satisfy its obligations under the Agreement through its ongoing compliance program, which is overseen by the Board of Directors and was developed to monitor compliance on a comprehensive basis across all service lines at the direction of the Company’s Chief Compliance Officer.
The foregoing description of the Agreement is qualified in its entirety by reference to the full text of the Agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
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Exhibit No. |
Description of Exhibit |
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10.1 |
Corporate Integrity Agreement, entered into December 19, 2017, by and among the Office of the Inspector General of the Department of Health and Human Services and Envision Healthcare Corporation. |
Envision Healthcare Corp ExhibitEX-10.1 2 evhc8k20171219ex10v1.htm EXHIBIT 10.1 Exhibit Exhibit 10.1CORPORATE INTEGRITY AGREEMENT BETWEEN THE OFFICE OF INSPECTOR GENERAL OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND ENVISION HEALTHCARE CORPORATIONI.PREAMBLE Envision Healthcare Corporation (Envision) hereby enters into this Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG) of the United States Department of Health and Human Services (HHS) to promote compliance with the statutes,…To view the full exhibit click here