- Associated Press - Tuesday, October 4, 2016

PHOENIX (AP) - A nonprofit that operates hospitals in Prescott and Prescott Valley has agreed to pay $5.85 million to settle a lawsuit contending it inflated payments from the federal government under the Medicare program by using an inflated wage scale for the Prescott area.

The settlement resolves a lawsuit that Medicare improperly paid $19.1 million to Yavapai Regional Medical Center between 2006 and 2009.

The U.S. Attorney Office’s announcement of the settlement says it wasn’t an admission of liability by Yavapai or a concession by the government about its claims’ validity.

The office announced the settlement Wednesday, a day after a federal judge dismissed the lawsuit filed last April by Gregory Kuzma under a whistleblower law.

The announcement says Kuzma will receive nearly $1.2 million as his share of the settlement payment.

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