Memorial Hermann Health System today announced the amicable resolution of an inquiry by the office of the Texas Attorney General into its business practices with regard to managed care contracting. In November 2006, the Attorney General's office began an investigation to determine whether Memorial Hermann engaged in anticompetitive behavior. Memorial Hermann has cooperated fully with the Attorney General throughout the investigation.
Following a thorough, two-year inquiry, the Attorney General and Memorial Hermann have resolved this matter and entered into a settlement in which there is no finding or conclusion that Memorial Hermann violated any law. Under the terms of the settlement reached, Memorial Hermann agreed to a 5-year injunction prohibiting certain contracting practices - practices Memorial Hermann has never employed.
"As a not-for-profit healthcare system, Memorial Hermann works diligently to steward community resources so that we can provide our patients the best available medical care," said Dan Wolterman, President & CEO. "From a business standpoint, that means working with insurance companies, federal and state governments, and our vendors every day to ensure we negotiate the best possible contracts. Memorial Hermann's existing contracting practices are consistent with those outlined in the injunction, so we can readily comply with them. We are pleased to resolve this matter. Memorial Hermann can now turn our full attention to serving the health care needs of the Houston community."
Memorial Hermann is not required to pay any fine or penalty. In consideration of the significant cost of the Attorney General's protracted investigation, Memorial Hermann did agree to partially reimburse the office for incurred expenses.