HCA Holdings 2012 Annual Report Download - page 140

HCA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 10 — LONG-TERM DEBT (continued)
General Debt Information (continued)
facility on a first-priority basis and are secured by third-priority liens, subject to permitted liens, on our and our
subsidiary guarantors’ assets that secure our asset-based revolving credit facility on a first-priority basis and our
other cash flow credit facility on a second-priority basis.
Maturities of long-term debt in years 2014 through 2017, excluding amounts under the ABL credit facility,
are $772 million, $1.045 billion, $2.265 billion and $2.210 billion, respectively.
NOTE 11 — CONTINGENCIES AND LEGAL CLAIM COSTS
We operate in a highly regulated and litigious industry. As a result, various lawsuits, claims and legal and
regulatory proceedings have been and can be expected to be instituted or asserted against us. We are also subject
to claims and suits arising in the ordinary course of business, including claims for personal injuries or wrongful
restriction of, or interference with, physicians’ staff privileges. In certain of these actions the claimants may seek
punitive damages against us which may not be covered by insurance. The resolution of any such lawsuits, claims
or legal and regulatory proceedings could have a material, adverse effect on our results of operations or financial
position.
Government Investigations, Claims and Litigation
Health care companies are subject to numerous investigations by various governmental agencies. Under the
Federal False Claims act (“FCA”) private parties have the right to bring qui tam, or “whistleblower,” suits
against companies that submit false claims for payments to, or improperly retain overpayments from, the
government. Some states have adopted similar state whistleblower and false claims provisions. Certain of our
individual facilities have received government inquiries from federal and state agencies and our facilities may
receive such inquiries in future periods. Depending on whether the underlying conduct in these or future inquiries
or investigations could be considered systemic, their resolution could have a material, adverse effect on our
results of operations, financial position and liquidity.
As initially disclosed in 2010, the Civil Division of the Department of Justice (“DOJ”) has contacted the
Company in connection with its nationwide review of whether, in certain cases, hospital charges to the federal
government relating to implantable cardio-defibrillators (“ICDs”) met the Centers for Medicare and Medicaid
Services criteria. In connection with this nationwide review, the DOJ has indicated that it will be reviewing
certain ICD billing and medical records at 95 HCA hospitals; the review covers the period from October 2003 to
the present. In August 2012, HCA, along with non-HCA hospitals subject to the DOJ’s review, received from the
DOJ a proposed framework for resolving the DOJ’s review of ICDs. The Company is cooperating in the review.
The review could potentially give rise to claims against the Company under the federal FCA or other statutes,
regulations or laws. At this time, we cannot predict what effect, if any, this review or any resulting claims could
have on the Company.
In July 2012, the Civil Division of the U.S. Attorney’s Office in Miami requested information on reviews
assessing the medical necessity of interventional cardiology services provided at any Company facility (other
than peer reviews). The Company is cooperating with the government’s request and is currently producing
medical records associated with particular reviews at eight hospitals, located primarily in Florida. At this time,
we cannot predict what effect, if any, the request or any resulting claims, including any potential claims under the
federal FCA, other statutes, regulations or laws, could have on the Company.
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