By Ian McCann
The Dallas Morning News
DALLAS — Several Dallas-area suburbs will pay the federal and state governments more than a half-million dollars combined under settlement agreements related to an ambulance-billing lawsuit.
The suit is similar to but separate from a suit Dallas has settled. The overbilling to Medicare and Medicaid for ambulance service will cost that city $2.47 million, according to an agreement released by the U.S. attorney’s office Tuesday.
The suburban case remains under seal, but several cities have approved settlement agreements in recent weeks. All involve billing performed by a contractor, Southwest General Services of Dallas.
Among those that have settled are Plano, Richardson, Frisco and DeSoto. Because the suit is sealed, it is unclear what other cities are involved, but the Plano settlement says 25 cities are included. A U.S. attorney’s office spokeswoman declined to comment.
The largest of the settlements was Plano’s at $433,262. Richardson’s, approved Monday, was $160,979. Frisco’s settlement was for $127,515, while DeSoto’s was $63,100.
Joe Gorfida, a city attorney for Richardson and DeSoto, said it was in the cities’ best interest to settle even if they did not agree that they violated the law.
“If you look at the amount of money involved in battling in court, it makes sense,” he said. “You’re fighting against the state and the federal government and the resources they have.”
In her recommendation to the Plano City Council, City Attorney Diane Wetherbee also cited costs of pursuing litigation as well as a higher liability if the city were to lose in court.
Douglas Moore, a former Dallas city auditor, filed the suit under federal law and can collect a portion of the money paid to the government. He also filed the Dallas suit, as well as employment claims against the city.
While details alleged in the suburban cities’ cases have not been disclosed, the settlement agreements lay out some of the federal government’s case.
It alleges that the cities, through Southwest General Services, charged Medicare and Medicaid for a higher level of ambulance service than was actually performed. Under the “advance life support” level, cities are entitled to a higher reimbursement rate than the “basic life support” level.
Under the agreements, the cities do not admit to any wrongdoing. Company officials could not be reached for comment, and its attorneys did not return calls seeking comment.
Copyright 2011 THE DALLAS MORNING NEWS