Hospital reaches $40 million settlement with feds

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LOUISVILLE, Ky. (AP) — A hospital in northeastern Kentucky has reached a $40.9 million settlement with the federal government over claims that it made millions of dollars by falsely billing federal health care programs.

The settlement announced Wednesday ends an investigation into whether King's Daughters Medical Center in Ashland performed heart procedures that the patients didn't medically need between 2006 and 2011. The procedures included unnecessary coronary stents and diagnostic catheterizations performed by doctors at the hospital.

U.S. Attorney Kerry Harvey in Lexington says the settlement is the largest of its kind involving a hospital in the history of the 67 counties in the Eastern District of Kentucky. The settlement total roughly doubles the amount of money King's Daughters received as a result of the alleged fraudulent billing for the services.

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