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MECHANICSBURG, Penn., — Select Medical Corporation (“Select Medical”), today commented on the settlement of a qui tam lawsuit filed in the United States District Court for the Southern District of Indiana against it, certain of its subsidiaries and an Evansville physician by three former employees of Select Specialty Hospital – Evansville, LLC (“SSH Evansville”). SSH Evansville is a joint venture that operates a critical illness recovery hospital in Evansville, Indiana. The relators were Tracy Conroy, Pamela Schenk and Lisa Velotta f/k/a Lisa Wilson (the “Relators”).
During October 2019, Select Medical and certain of its subsidiaries entered into a settlement agreement with the United States government and the Relators in connection with this qui tam lawsuit. Filed in 2012 by the Relators, the lawsuit included a broad range of allegations. After an investigation, the government declined to intervene to pursue the case, and most of the allegations were later dismissed by the Court. Under the terms of the settlement, SSH Evansville agreed to make certain payments to the government, the Relators and their counsel. In the settlement agreement, the government and the Relators released all defendants from liability for all conduct alleged in the complaint, and the defendants admitted no liability or wrongdoing.
“Our management and Board of Directors believe that this case had no merit. Nevertheless we considered the amount of money and time the company has expended in this matter and the additional resources needed to take the case to conclusion in court and decided this settlement agreement made business sense,” said David S. Chernow, Select Medical’s Chief Executive Officer.
Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States based on the number of facilities. As of September 30, 2019, Select Medical operated 100 critical illness recovery hospitals in 28 states, 29 rehabilitation hospitals in 12 states, and 1,707 outpatient rehabilitation clinics in 37 states and the District of Columbia. Select Medical’s joint venture subsidiary Concentra operated 523 occupational health centers in 41 states. Concentra also provides contract services at employer worksites and Department of Veterans Affairs community-based outpatient clinics. At September 30, 2019, Select Medical had operations in 47 states and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.