January 15, 2008
YKHC awarded settlement in court case against Indian Health Service
Gene Peltola, President/CEO
According to a decision released this week by the U.S. Civilian Board of Contract Appeals in the Yukon-Kuskokwim Health Corporation vs. the U.S. Department of Health and Human Services, YKHC has been awarded more than $25 million plus interest from 1996, in the largest judgment ever recovered against the U.S. Indian Health Service.
Since the 1970s the Indian Health Service has awarded contracts to Indian Tribes to operate federal health care facilities in place of the agency. However, beginning in the early 1990s, the agency began underpaying the Tribes' contracts in order to fund other agency priorities. This became a national issue, and in 2005, the United States Supreme Court decided in favor of the Cherokee Nation and the Shoshone Paiute Tribes who had sued the agency calling their underpaying conduct illegal.
After 11 years, our tireless effort has come to a positive conclusion. We can move forward in partnership with the Indian Health Service to address the critical health care needs of our people.These funds are coming at a significant time, considering that federal appropriations to our contracts fail year after year to keep up with inflation.
We are examining the health disparities affecting the region, the financial viability of our company and will meet with our Board of Directors later this week to develop a comprehensive plan to handle the funds.
