Community Health Systems 2015 Annual Report Download - page 63

The following table lists the hospitals owned by joint venture entities in which we do not have a consolidating
ownership interest, along with our percentage ownership interest in the joint venture entity as of December 31,
2015. Information on licensed beds was provided by the majority owner and manager of each joint venture. A
subsidiary of HCA Holdings, Inc. is the majority owner of Macon Healthcare LLC, and a subsidiary of Universal
Health Services, Inc. is the majority owner of Summerlin Hospital Medical Center LLC and Valley Health
System LLC.
Joint Venture Facility Name City State
Licensed
Beds
Macon Healthcare LLC ............. Coliseum Medical Center (38%) Macon GA 250
Macon Healthcare LLC ............. Coliseum Psychiatric Center (38%) Macon GA 60
Macon Healthcare LLC ............. Coliseum Northside Hospital (38%) Macon GA 103
Summerlin Hospital Medical
Center LLC .................... Summerlin Hospital Medical Center
(26.1%) Las Vegas NV 454
Valley Health System LLC .......... Desert Springs Hospital (27.5%) Las Vegas NV 293
Valley Health System LLC .......... Valley Hospital Medical Center
(27.5%) Las Vegas NV 301
Valley Health System LLC .......... Spring Valley Hospital Medical
Center (27.5%) Las Vegas NV 237
Valley Health System LLC .......... Centennial Hills Hospital Medical
Center (27.5%) Las Vegas NV 187
Item 3. Legal Proceedings
From time to time, we receive inquiries or subpoenas from state regulators, state Medicaid Fraud Control
units, fiscal intermediaries, the Centers for Medicare and Medicaid Services and the Department of Justice
regarding various Medicare and Medicaid issues. In addition to the matters discussed below, we are currently
responding to subpoenas and administrative demands concerning (a) certain cardiology procedures, medical
records and policies at a New Mexico hospital, (b) a civil investigative demand concerning cardiology devices at
a Pennsylvania hospital, (c) an inquiry regarding a sleep lab at a Louisiana hospital, (d) a subpoena regarding
wound care services at one of our Florida hospitals (which appears to be related to the recently unsealed case
styled U.S. ex rel. Van Raalte, v. Healogics, Inc.), (e) a subpoena concerning provider based billing status for
hyperbaric oxygen therapy at one of our Tennessee hospitals and (f) a civil investigative demand concerning
neonatal services at one of our Washington hospitals. In addition, we are subject to other claims and lawsuits
arising in the ordinary course of our business. Based on current knowledge, management does not believe that
loss contingencies arising from pending legal, regulatory and governmental matters, including the matters
described herein, will have a material adverse effect on the consolidated financial position or liquidity of the
Company. However, in light of the inherent uncertainties involved in pending legal, regulatory and governmental
matters, some of which are beyond our control, and the very large or indeterminate damages sought in some of
these matters, an adverse outcome in one or more of these matters could be material to our results of operations
or cash flows for any particular reporting period. Settlements of suits involving Medicare and Medicaid issues
routinely require both monetary payments as well as corporate integrity agreements. Additionally, qui tam or
“whistleblower” actions initiated under the civil False Claims Act may be pending but placed under seal by the
court to comply with the False Claims Act’s requirements for filing such suits. In September 2014, the Criminal
Division of the United States Department of Justice, or DOJ, announced that all qui tam cases will be shared with
their Division to determine if a parallel criminal investigation should be opened. The Criminal Division has also
frequently stated an intention to pursue corporations in criminal prosecutions. From time to time, we detect issues
of non-compliance with Federal healthcare laws pertaining to claims submission and reimbursement practices
and/or financial relationships with physicians. We avail ourselves of various mechanisms to address potential
overpayments arising out of these issues, including repayment of claims, rebilling of claims, and participation in
voluntary disclosure protocols offered by the Centers for Medicare and Medicaid Services and the Office of the
Inspector General. Participating in voluntary repayments and voluntary disclosure protocols can have the
potential for significant settlement obligations or even enforcement action.
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