settlement agreement - pya

SETTLEMENT AGREEMENT

I. PARTIES

This Settlement Agreement ("Agreement") is entered into by and among the United States

of America, acting through the United States Department of Justice, and the United States

Attorney for the Southern District of Texas, and on behalf of the Office of Inspector General of the

Department of Health and Human Services ("OIG-HHS"), (collectively, the "United States");

SCCI Health Services Corporation ("SCCI Corp.") and. SCCI Hospital Ventures, Inc., d/b/a SCCI

Hospital Houston Central ("SCCI Houston") (collectively, "SCCI"); Defendant Victor A. Pallates,

M.D. ("Pallares"); Defendant Ramachandra Malya, M.D. ("Malya’); and relators Darryl L.

Kaczmarczyk ("Kaczmarczyk"), Michelle M. Pate ("Pate"), Teresa J. Taylor ("Taylor"), Michael

D. Brigle ("Brigle"), and Patricia G. Rocha (also known as Patricia Lizotte) ("Rocha")

(collectively, "Relators") through their authorized representatives; and Relators’ attorneys,

Volkema Thomas, Hare Wynn Newell & Newton, E.D. McKinney, and John Green, and former

attorneys Helmer, Martins, Rice & Popham.

collectively as "the Parties.’:

Hereinafter, all of the above shall be referred to

II. PREAMBLE

As a preamble to this Agreement, the Parties agree to the following:

A. WHEREAS at all relevant times herein, SCCI Houston was a 40-bed long

term acute care hospital located in Houston, Texas.

B. WHEREAS at all relevant times herein, SCCI Corp. owned and operated

long term acute care hospitals, including SCCI Houston.

C. WHEREAS Relators are all individual residents of Texas. Four relators are

former employees of SCCI Houston and Brigle was an independent contractor, employed by

PharmaSource, who provided pharmacy services at SCCI Houston.

D. WHEREAS on April 1, 1999, relators Kaczmarczyk, Pate and Taylor filed

a qui tam action in the United States District Court for the Southern District of Texas captioned

U.S. ex tel. Kaczmarczyk, et al., v. SCCI Health Services Corporation, et al., Civil Action No.

H-99-1031 ("the original qui tam complaint").

E. WHEREAS Relators filed their First Amended Complaint ("Relators’ First

Amended Complaint") in the United States District Court for the Southern District of Texas on

January 17, 2001. P(elators filed their Second Amended Complaint on April 12, 2004 and a

substitute.Second Amended Complaint on April 21, 2004 ("Relators’ Second. Amended

Complaint"). Relators will file a Third Amended Complaint concurrently with the Joint

Stipulation of Dismissal as specified in Paragraph 24 below. (The original qui tam complaint,

Relators’ First Amended Complaint, Relators’ Second Amended Complaint, and Relators’ Third

Amended Complaint shall be referred to collectively as "Relators’ Complaint").

F. WHEREAS the United States partially intervened in the Relators’ First

Amended Complaint on October 2, 2002, and then filed the United States’ Complaint on March 10,

2003. The United States filed a First Amended Complaint on July 14, 2004 (collectively referred

to as "United States’ Complaint").

(3. WHEREAS the United States contends that SCCI submitted or caused to be

submitted claims for payment to the Medicare Program ("Medicare"); Title XVIII of the Social

Security Act, 42 U.S.C. §§ 1395-1395hhh.

H. WHEREAS the United States contends that it has certain civil claims, as

specified in Paragraph 3 below, against SCCI for engaging in the following conduct during the

period from November 1, 1996 through December 31, 2000: knowingly presenting Or causing to

be presented false or fraudulent claims for payment or approval to the United States for

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reimbursement for services rendered to Medicare patients unlawfully referred to SCCI Houston by

Pallares, Malya and Joseph Guerrini, M.D., to whom SCCI provided or caused to be provided

illegal remuneration and/or with whom SCCI entered or caused to be entered into prohibited

financial relationships with SCCI Houston, in violation of 42 U.S.C. § 1395nn and the regulations

promulgated thereunder ("Stark Law") (hereinafter referred to as the "United States’ Stark

Covered Conduct").

I. WHERE.~S the United States contends that it may assert certain c.ivil

claims pursuant to Count I of Relators’ Complaint, as specified in Paragraph 3 below, against

SCCI for engaging in the following conduct: (1) falsely increasing its cost reimbursement and

inflating the rate of reimbursement established pursuant to the Tax Equity and Fiscal

Responsibility Act of 1982 ("TEFRA") during SCCI Houston’s base. year cost report (the cost

report period ending October 31, i 997) by allocating home office costs based on patient days as

Opposed to total costs; (2) including non-allowable costs for depreciation and interest associated

with the purchase of SCCI Houston on SCCI Houston’s cost reports for the periods ending

October 31, 1997 through October 31, 2002; (3) improperly allocating amounts for amortization

of prior year corporate pre-opening start-up costs on SCCI Houston’s cost reports for the periods

ending October 31, 1997 through October 31, 2002; and (4) including non-allowable salary

expensesfor individuals involved in marketing and development on SCCI Houston’s cost reports

for the periods ending October 31, 1997 through October 31, 2000 (collectively, the "United

States’ TEFRA Covered Conduct").

J. WHEREAS, the United States also contends that it has certain

administrative claims, as specified in Paragraph6, below, against SCCI for engaging in the United

States’ Stark Covered Conduct and the United States’ TEFRA Covered Conduct.

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K. WHEREAS Relators Pate and Rocha contend that they have certain civil

claims pursuant to Count III of Relators’ Complaint, as specified in Paragraphs 4 and 5 below,

against SCCI for engaging in the following conduct: wrongfully terminating their employment in

retaliation for their actions in furtherance of this qui tam action, in violation of 31 U.S:C. § 3730(h)

("Retaliation Covered Conduct").

L. WHEREAS Relators contend that they have certain civil claims pursuant to

Count II of Relators’ Complaint, as specified in Paragraph 4 below, against SCCI for (i) providing ’

illegal incentives to physicians to obtain referrals of patients and to perpetuate its scheme to charge

for duplicative, unnecessary or otherwise non-reimbursable tests; and (ii) knowingly permitting its

physicians to refer patients to entities in which they had a prohibited financial relationship in

violation of the Stark Law, and the regulations promulgated thereunder, and the Anti-Kickback

Statute, 42 U.S.C. § 1320a-7b(b) and the regulations promulgated thereunder ("Anti-Kickback

Statute") (collectively, "Relators’ Stark and Anti-Kickback Covered Conduct").

M. WHEREAS Relators contend that they have certain civil claims pursuant to

Count I of Relators’ Complaint, as specified in Paragraph 4 below, against SCCI for: knowingly

initiating and pursuing a scheme to falsely obtain payment from the United States for

non-allowable costs, falsely-inflated costs, and services not performed in violation of 42 U.S.C.

§§ 1395f(b), 1395g, 1395x(v), 1395y(a), 1396a(a)(30)(A), 1396a(a)(B)(E), and the regulations

promulgated thereunder, including 42 C.F.R. §§ 409.13(a), 411.15(k), and 424.5(a) (collectively

"Relators’ TEFRA Non-allowable Costs Covered Conduct").

N. WHEREAS Relators contend that they have certain civil claims pursuant to

Counts I and II of Relators’ Complaint, as specified in Paragraphs 4 and 5 below, against Pallares

("Pallares Covered Conduct").

O. WHEREAS Relators contend that they have certain civil claims pursuant to

Counts I and II of Relators’ Complaint, as specified in Paragraphs 4 and 5 below, against Malya

("Malya Covered Conduct").

P. WHEREAS SCCI, Pallares and Malya deny every contention of the United

States set forth in Paragraphs H, I and J and every contention of the Relators set forth in Paragraphs

K, L, M, N and O. This Agreement is neither an admission of liability by SCCI, Pallares or Malya,

nor a concession by the United States or Relators that their claims are not well founded.

Q. WHEREAS .to avoid the delay, uncertainty, inconvenience, and expense of

protracted litigation of the above claims, the Parties reach a full and final settlement pursuant to the

Terms and Conditions below.

III. TERMS AND CONDITIONS

1. SCCI agrees to pay the United States as follows:

a. SCCI shall pay the United States a total of $6.5 million (six million

five hundred thousand dollars and 00/cents) in settlement of the United States’ Stark Covered

Conduct.

b. SCCI shall pay the United States $1 million (one million dollars and

00/cents) in settlement of the United States’ TEFRA Covered’ Conduct.

c. SCCI agrees to pay the amounts set forth in Paragraphs 1 .a. and 1 .b.

(collectively, the "Settlement Amount") to the United States by electronic funds transfer, pursuant

to written instructions to be provided by the United States Attorney for the Southern District of

Texas. SCCI agrees to make this electronic funds transfer no later than 7 business days following

the Effective Date of this Agreement.

d. Contingent upon the United States receiving the amounts set forth in

Paragraphs 1 .a. and 1 .b. from SCCI, and as soon as feasible after receipt, the United States agrees

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to pay $1,700,000 (one million seven hundred thousand dollars and 00/cents) to Relators

("Relators’ Share") by electronic funds transfer.

2. SCCI agrees to pay Relators as follows:

a. SCCI agrees to pay Relators Pate and Rocha, collectively, the total

amount of $300,000 (three hundred thousand dollars and 00/cents) in settlement of Pate’s and

Rocha’s claims of the Retaliation Covered Conduct.

b. SCCI agrees to pay Relators $2.2 million (two million two hundred

thousand dollars and 00/cents) for Relators’ expenses and attorneys’ fees and costs, pursuant to 31

U.S.C. § 3730(d).

c. SCCI agrees to pay the amounts set forth in Paragraphs 2.a. and 2.b.

to the Relators and their counsel by electronic funds transfer pursuant to written instructions to be

provided by Relators’ counsel at Volkema Thomas, L.P.A. SCCI agrees to make this electronic

funds transfer nolater than 7 business days following the Effective Date of this Agreement. The

Relators and their attorneys authorize SCCI to issue an IRS form 1099 to Volkema Thomas, L.P.A,

for any amounts paid to the Relators and/or their attorneys in a given calendar year pursuant to

Paragraphs 2.a. and 2.b. hereof, but the Relators do not acknowledge a tax liability for the amounts

set forth in Paragraph 2.b.

3. Subject to the exceptions in Paragraph 7 below, in consideration of the

obligations of SCCI in this Agreement, conditioned upon SCCI’s full payment of the Settlement

Amount, the United States (on behalf of itself, its officers, agents, agencies, and departments)

agrees to fully and finally release SCCI, together with its current and former parent corporations,

its direct and indirect subsidiaries, brother or sister corporations, divisions, current or former

owners, officers, shareholders, directors, employees, and affiliates, and the successors and assigns

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of any of them, from any civil or administrative monetary claim the United States has or may have

in the future for the United States’ Stark Covered Conduct and the United States’ TEFRA Covered

Conduct under the False Claims Act, 31 U.S,C. §9 3729-3733; the civil monetary penalty

provisions of the Stark Law, 42 U.S.C. 99 1395nn(g)(3) and (4); the Civil Monetary Penalties Law,

42 U.S.C. § 1320a-7a; the Program Fraud Civil Remedies Act, 31 U.S.C. 9§ 3801-3812; or the

common law and/or equitable theories of recovery for payment by mistake, unjust enrichment,

disgorgement of illegal profits, imposition of a constructive trust and accounting, recoupment of

overpayments, and fraud.

4. Subject to the exceptions in Paragraph 7 below, in consideration of the

obligations of SCCI in this Agreement, conditioned upon SCCI’s full payment of the Settlement

Amount, Relators, for themselves and for their heirs, successors, attorneys, former attorneys,

agents, and as~signs, agree to fully and finally release SCCI, together with its current and former

parent corporations, its direct and indirect subsidiaries, brother or sister corporations, divisions,

current or former owners, officers, shareholders, directors, employees and affiliates, and the

successors, attorneys, agents and assigns of any of them, and Pallares and Malya from any claim

the Relators have asserted, could have asserted or may assert in the future related to the United

States’ Stark Covered Conduct, the United States’ TEFRA Covered Conduct, the Relators’ Stark

and Anti-Kickback Covered Conduct, the Relators’ TEFR~ Non-allowable Costs Covered

Conduct, the Pallares Covered Conduct, the Malya Covered Conduct, or any other claim Relators

asserted, could have been asserted or may have asserted in the future related to United States’

Complaint under the False Claims Act; 31 U.S.C. 9§ 3729-3733.

5. Conditioned upon payment by SCCI of the payments described in

Paragraphs 1 and 2 above, Relators, for themselves and for their heirs, successors, attorneys,

former attorneys, agents, and assigns, also agree to fully and finally release SCCI, together with its

current and former parent corporations, its direct and indirect subsidiaries, brother or sister

corporations, divisions, current or former owners, officers, shareholders, directors, employees and

affiliates, and the successors, attorneys, agents and assigns of any of them, and Pallares and Malya

from all claims Relators have asserted, could have asserted or may assert in the future related to the

Retaliation Covered Conduct or any other claim asserted in or arising from or related to the

Relators’ Complaint, the United States~ Complaint and/or under 31 U.S.C. § 3730(d) for expenses

or attorneys’ fees and costs.

6. OIG-HHS expressly reserves the right to institute, direct, or to maintain any

administrative action seeking exclusion against SCCI and/or its officers, directors, and employees

from Medicare, Medicaid, or other Federal health care programs (as defined in 42 U.S.C.

§ 1320a-7b(f)) under 42 U.S.C. § 1320a-7(a) (mandatory exclusion) or 42 U.S.C. § 1320a-7(b)

(permissive exclusion).

7. Notwithstanding any term of this Agreement, specifically reserved and

excluded from the scope and terms of this Agreement as to any entity or person (including SCCI,

Pallares, Malya and Relators) are the following claims of the United States:

a. Any civil, criminal, or administrative liability arising under Title 26,

U.S. Code (Internal Revenue Code);

b. Any criminal liability;

c. Exc.ept as explicitly stated in this Agreement, any administrative

liability, including mandatory and permissive exclusion from Federal health care programs;

d. Any liability to the United States (or its agencies) for any conduct

not covered by the United States’ release in Paragraph 3 herein;

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Agreement;

e. Any liability based upon such obligations as are created by this

f. Any liability for express or implied warranty claims or other claims

for defective or deficient products or services, including quality of goods and services; and

g. Any liability for failure to deliver goods or services due.

8. Relators and their heirs, successors, attorneys, former attorneys, agents, and

assigns agree not to object to this Agreement and agree and confirm that this Agreement is fair,

adequate, and reasonable under all the circumstances, pursuant to 31 U.S.C. § 3730(c)(2)(B) and,

conditioned upon receipt of Relators’ share, Relators, for themselves individually, and for their

heirs, successors, agents, and assigns, fully and finally release, waive, and forever discharge the

United States, its officers, agents, and employees, from any claims arising from or relating to 31

U.S.C. § 3730; from any claims arising from the filing of the Relators’ Complaint, the United

States’ Complaint, and from any other claims for a share of the Settlement Amount; and in full

settlement of any claims Relators may have under this Agreement. This Agreement does not

resolve or in any manner affect any claims the United States has or may have against the Relators

arising under Title 26, U.S. Code (Internal Revenue Code), or any claims arising under this

Agreement.

9. SCCI waives and shall not assert any defenses SCCI may have to any

criminal prosecution or administrative action relating to the United States’ Stark Covered Conduct

and the United States’ TEFRA Covered Conduct that may be based in whole or in part on a

contention that, under the Double Jeopardy Clause in the Fifth Amendment of the Constitution, or

under the Excessive Fines Clause in the Eighth Amendment of the Constitution, this Agreement

bars a remedy sought in such criminal prosecution or administrative action. Nothing in this

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Paragraph or any other provision of this Agreement constitutes an agreement by the United States

concerning the characterization of the Settlement Amount for purposes of the Internal Revenue

laws, Title 26 of the United States Code.

10. SCCI, together with its current and former parent corporations, its direct

and indirect subsidiaries, brother or sister corporations, divisions, current or former owners,

officers, shareholders, directors, employees, and affiliates, and the successors andassigns of any

of them, fully and finally releases the United States, it~ agencies, employees, servants, and agents

from any claims (including attorney’s fees, costs, and expenses of every kind and however

denominated) that SCCI has asserted, could have asserted, or may assert in the future against the

United States, its agencies, employees, servants, and agents, related to the United States’ Stark

Covered Conduct and the United States’ TEFRA Covered Conduct, and the United States’

investigation and prosecution thereof.


and indirect subsidiaries, brother or sister corporations, divisions, current or former owners,

officers, shareholders, directors, employees, and affiliates, and the successors, attorneys, agents

and assigns of any of them, fully and finally release Relators and their heirs, successors, attorneys,

agents, and assigns from any claims (including attorney’s fees, costs, and expenses of every kind

and however denominated) that SCCI has asserted, could have asserted, or may assert in the future

against Relators and their heirs, successors, attorneys, agents, and assigns related to the

investigation, filing, and prosecution of the Relators’ Complaint, the United States’ Complaint or

under 3! U.S.C. § 3730(d) for expenses or attorney’s fees and costs.

12. Pallares an.d Malya, together with their heirs, successors, attorneys, agents,

and assigns fully and finally release Relators and their heirs, successors, attorneys, agents, and

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assigns from any claims (includingattorney’s fees, costs, and expenses of every kind and however

denominated) that Pallares and/or Malya have asserted, could have asserted, or may assert in the

future against Relators and their heirs, successors, attorneys, agents, and assigns related to the

!nvestigation, filing, and prosecution Of the Relators’ Complaint, the United States’ Complaint or

under 31 U.S.C.. § 3730(d) for expenses or attorney’s fees and costs.


and indirect subsidiaries, brother or sister corporations, divisions, current Or former owners,

officers, shareholders, directors, employees, and affiliates, and their successors and assigns and

Pallares and Malya, together with each of their heirs, successors, attorneys, agents, and assigns,

each agree to fully and finally release one another from any claims arising out of or relating to the

~United States’ Stark Covered Conduct, the United States’ TEFRA Covered Conduct, the Relators’

Stark and Anti-Kickback Covered Conduct, the Retaliation Covered Conduct, Relators’ TEFRA

Non-allowable Costs Covered Conduct, Pallares’ Covered Conduct, Malya’s Covered Conduct, or

any other claims in the United States’ Complaint, and/or the Relators’ Complaint..

14. The Settlement Amount shall not be decreased as a result of the denial of

claims for payment now being withheld from payment by any Medicare carrier or intermediary or

any state payer, related to the United States’ Stark Covered Conduct or the United States’ TEFRA

Covered Conduct; and SCCI shall not resubmit to any Medicare carrier or intermediary or any

state payer any previously denied claims related to the United States’ Stark Covered Conduct or

the United States’ TEFRA Covered Conduct and shall not appeal any such previous denials of

claims.

15. SCCI agrees to the following:

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a. Unallowable Costs Defined: that all costs (as defined in the Federal

Acquisition Regulation, 48 C.F.R. § 31.205-47; and in Titles XVIII and XIX of the Social Security

ACt, 42 U.S.C.§§ 1395-1395ggg and 1396-1396v; and the regulations and official program

directives promulgated thereunder) incurred by or on behalf of S CCI, its present or former officers,

directors, employees, shareholders, and agents in connection with the following shall be

°°unallowable costs" on government contracts and under the Medicare Program, Medicaid Program,

TRICARE Program, and Federal Employees Health Benefits Program (°°FEHBP"):

(1) the matters covered by this Agreement;

(2)

matters covered by this Agreement;

(3)

the United States’ audit(s) and civil investigation(s) of the

SCCI’s investigation, defense, and corrective actions

undertaken in response to the United States’ audit(s) and civil investigation(s) in connection with

the matters covered by this Agreement (including attorney’s fees);

(4)

(5)

the negotiation and performance of this Agreement; and

the payment SCCI makes to the United States pursuant to

this Agreement and any payments that SCCI may make to Relators, including costs and attorneys’

fees. (All costs described or set forth in this Paragraph 15.a. are hereafter "unallowable costs.")

b. Future Treatment of Unallowable Costs: These unallowable costs

shall be separately determined and accounted for in nonreimbursable cost centers by SCCI, and

SCCI shall not charge such unallowable costs directly or indirectly to any contracts with the

United States or any State Medicaid program, or seek payment for such unallowable costs through

any cost report, cost statement, information statement, or payment request submitted by or on

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behalf of SCCI or any of its subsidiaries or affiliates to the Medicare, Medicaid, TRICARE, or

FEHBP Programs.

SCCI further agrees that within 90 days of the Effective Date of this Agreement it shall identify to

applicable Medicare and TRICARE fiscal intermediaries, carriers, and/or contractors, and

Medicaid and FEHBP fiscal agents, any unallowable costs (as defined in this Paragraph) included

in payments previously sought from the United States, or any State Medicaid program, including,

but not limited to, payments sought in any cost reports, cost statements, information reports, or

payment requests already submitted by or on behalf of SCCI or any of its subsidiaries or affiliates,

and shall request, and agree, that such cost reports, cost statements, information reports, or

payment requests, even if already settled, be adjusted to account for the effect of the inclusion of

the unallowable costs. SCCI agrees that the United States, at a minimum, shall be entitled to

recoup from SCCI any overpayment plus applicable interest and penalties .as a result of the ¯

inclusion of such unallowable costs on previously-submitted cost reports, information reports, cost

statements, or requests for payment.

Any payments due after the adjustments have been made shall be paid to the United States

pursuant to the direction of the Department of Justice and/or the affected agencies. The United

States reserves its rights to disagree with any calculations submitted by or on behalf of SCCI or

any of its subsidiaries or affiliates on the effect of inclusion of unallowable costs (as defined in this

Paragraph) on SCCI or any of its subsidiaries or affiliates’ cost reports, cost statements, or

information reports.

Treatment of Unallowable Costs Previously Submitted for Payment:

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d. . Nothing in this Agreement shall constitute a waiver of the rights of

the United States to audit, examine, or re-examine SCCI’s books and records to determine that no

unallowable costs have been claimed in accordance with the provisions of this Paragraph.

16. This Agreement is intended to be for the benefit of the Parties only. The

Parties do not release any claims against any other person or entity, except to tl4e extent provided

for in Paragraphs 3, 4, 5, 8, 10, 11, 12, 13 and 17.

17. SCCI waives and shall not seek payment for any of the health care billings

covered by this Agreement from any health care beneficiaries or their parents, sponsors, legally

responsible individuals, or third party payors based upon the claims defined as the United States’

Stark Covered Conduct or the United States’ TEFRA Covered Conduct

18. SCCI warrants that it has reviewed its financial situation and that it

currently is solvent within the meaning ofl 1 U.S.C. § § 547(b)(3) and 548(a)(1)(B)(ii)(I), and shall

remain solvent following payment to the United States of the Settlement Amount and the

payments to Relators pursuant to Paragraphs 2:a. and 2.b., above. Further, the Parties warrant that,

in evaluating whether to execute this Agreement, they (a) have intended that the mutual promises,

covenants, and obligations set forth herein constitute a contemporaneous exchange for new value

given to SCCI, within the meaning of 11 U.S.C. § 547(c)(1); and (b) conclude that these mutual

promises, covenants, and obligations do, in fact, constitute such a contemporaneous exchange.

Further, the Parties warrant that the mutual promises, covenants, and obligations set forth herein

are intended to and do, in fact, represent a reasonably equivalent exchange of value that is not

intended to hinder, delay, or defraud any entity that SCCI was or became indebted to on or after the

date of this transfer, within the meaning of 11 U.S.C. § 548(a)(1).

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19. Except as expressly provided to the contrary in this Agreement, each Party

shall bear its own legal and other costs incurred in connection with this matter, including the

preparation and performance of this Agreement.

20. SCCI, Pallares and Malya represent that this Agreement is freely and

voluntarily entered into without any degree of duress or compulsion whatsoever.

21. Relators represent that this Agreement is freely and voluntarily entered into

without any degree of duress or compulsion whatsoever. ¯

22.. This Agreement is governed by the laws of the United States. The Parties

agree that the exclusive jurisdiction and venue for any dispute arising between and among the

Parties Under this Agreement is the United States District Court for the Southern District of Texas.

23. This Agreement constitutes the complete agreement between the Parties.

This Agreement may not be amended except by written consent c;f the Parties.

24. After receipt of the payments described in Paragraphs 1 and 2, above, the

United States and Relators shall promptly, but no later than 5 business days following receipt of

the payments described in Paragraphs 1 and 2 above, sign and file a Joint Stipulation of Dismissal

of the United States’ Complaint and a Joint Stipulation of Dismissal of the Relators’ Complaint, as

set forth inExhibit A attached hereto. Relators’ Third Amended Complaint is attached to the Joint

Stipulation as an Exhibit 1.

25. The individuals signing this Agreement on behalf of SCCI represent and

warrant that they are authorized by SCCI to execute this Agreement. The individual(s) signing this

Agreement on behalf of Relators represent and warrant that they are authorized by Relators to

execute this Agreement. The United States signatories represent that they are signing this

Agreement in their official capacities and that they are authorized to execute this Agreement.

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26. This Agreement may be executed in counterparts, each of which constitutes

an original and all of which constitute one and the same Agreement.

27. This Agreement is binding on SCCI’s, Pallares’ and Malya’s successors,

transferees, heirs, and assigns.

28. This Agreement is binding on Relators’ successors, transferees, heirs, and

assigns, attorneys and former ’attorneys.

29. Relators, Pallares and Malya consent to the United States’ disclosure, of

this Agreement, and information about this Agreement, to the public.

30. This Agreement is effective on the date of signature of the last signatory to

the Agreement ("Effective Date of this Agreement"). Facsimiles of signatures shall constitute

acceptable, binding signatures for purposes of this Agreement.

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THE UNITED STATES OF AMERICA

DATED:

DATED:~~t~!

BY:go

SUZETTE E. GORDON.. ESQ.Trial AttorneysCommercial Litigation BranchCivil DivisionUnited States Department of Justice

MICHELLE ZIN/G~. ESQ.Assistant U.S. ARM’neySouthern District of Texas

DATED: BY:GREGORY E. DEMSKE, ESQ.Assistant Inspector General for Legal AffairsOffice of Counsel to the Inspector GeneralOffice of Inspector GeneralUnited States Department of Healthand Human Services

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THE UNITED STATES OF AMERICA

DATED: BY:PATRICIA L. HANOWER, ESQ,SUZETTE E. GORDON. ESQ.Trial AttorneysCommercial Litigation BranchCivil DivisionUnited States Department of Justice

DATED: BY:MICHELLE ZINGARO. ESQ.Assistant U.S. AttorneySouthern District of Texas

DATED: BY:GREGORY E. DEMSKE, ESQ.Assistant Inspector General for Legal AffairsOffice of Counsel to the Inspector GeneralOffice of.Inspector GeneralUnited States Department of Healthand Human Services

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Nov-17-O6 09:29am From-ADA(GDT PROCTER LLP 16172278591 T-532 P.02/02 F-164

DEFENDANTS- SCC!

DATED:SCCI H LTH S]~ CORPORATIONBy: CHARLES ALLEN

DATED:SCCI H(~Sl~ITAL VENTI~S,"i~C-~ d/b/aSCCI HOSPITAL HOUSTON CENTRALBy: CH~ES ALLEN

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DEFENDANTS - PALLARES

DATED: VICT~BY: ~L 0~, ESQ. .

Odom Law Firm

(Counsel for Defendant Victor Pallares, M.D.)

DEFENDANTS-MALYA

DATED: \\

DATED: BY:

RAMACHANDRA MALYA: M.D.

Odom Law Firm

(Counse! for Defendant Ramachandra Malya, M.D.)

R~LATORS

DATED: BY:

DATED: BY:MICHELLE M. PATE

DATED: BY:TERESA J. TAYLOR

DATED: BY:MICHAEL D. BRIGLE

DATED: BY:PATRICIA G. LIZOTTE

2O

RELATORS

DATED: BY:DARRYL L. KACZMARCZYK

DATED:MICHELLE M. PATE

DATED: 11- /~-~:~ BY:

DATED:

DATED: BY:Go

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DATED: BY:, ESQ.

ESQ.9"olkema Thomas

DATED: BY:DONALD PATRICK MCKENNA, ESQ.Hare, Wynne, Newell & Newton

DATED: BY:E.D. MCKINNEY, ESQ.

DATED: BY:JOHN GREEN, ESQ.

(Counsel for Relators)

DATED: BY:JAMES B. HELMER, JR., ESQ.Helmer, Martins, Rice & Popham, Co., L.P.A.

(Former counsel for Relators)

DATED:

DATED:

BY:JENNIFER VERKAMP, ESQ.RICK MORGAN, ESQ.Volkema Thomas

Hare, Wyune, Newell & Newton




DATED: BY:JAMES B. HELMER, JR., ESQ.Helmer, Martins, Rice & Popham, Co., L.P.A.


DATED: BY:JENNIFER VERKAMP, ESQ.RICK MORGAN, ESQ.Volkema Thomas


DATED:E.D. MCKINNEY, ESQ. b’ ’ ~~]’



DATED: BY:JAMES B, HELMER; JR., ESQ.Helmer, Martins, Rice & Popham, Co., L.P.A.


DATED: BY:JENNIFER VERKAMP, ESQ.RICK MORGAN, ESQ.Volkema Thomas


DATED:

DATED:

BY:E.D. MCKINNEY, ESQ.


DATED: BY:JAMES B. HELMER, JR:, ESQ.Helmer, Martins, Rice & Popham, Co., L.P.A.


DATED: BY:JENNIFER VERKAM~, ESQ..RICK MORGAN, ESQ.Volkema Thomas





DATED:

Ao

(Former counsel for .Relators)

settlement agreement - pya

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