CITY OF TEMPE SETTLEMENT AGREEMENT.PDF
Extracted text (via pymupdf)
7490 characters
1
SETTLEMENT AGREEMENT
I. Recitals
1.
Parties. The Parties to this Settlement Agreement (Agreement) are the
Office of Inspector General (OIG) of the United States Department of Health and Human
Services (HHS), and City of Tempe (Respondent). OIG and Respondent shall hereafter
collectively be referred to as the “Parties.”
2.
Factual Background and Covered Conduct. On March 9, 2026, Respondent
made a submission pursuant to OIG’s Self Disclosure Protocol (Protocol), and OIG
accepted Respondent into the Protocol on April 3, 2026. The OIG contends that
Respondent knowingly presented to Medicare, the Arizona Medicaid program,
TRICARE and the Veteran’s Administration claims for items or services that Respondent
knew or should have known were not provided as claimed and were false or fraudulent.
Specifically, the OIG contends that during the period December 11, 2023 through August
15, 2025, Respondent submitted claims for services provided by the following unlicensed
Emergency Technicians and Paramedics: N.S., J.B., E.H., L.M., A.B., C.D.,C.H., R.E.,
and R.R. OIG further contends that Respondent submitted claims to said programs from
March 10, 2025 through September 24, 2025, for services provided by S.D. where S.D.
inappropriately signed authorization forms for treatment, privacy, transport, and billing
on behalf of the patients or their legal representatives. The OIG contends that the conduct
described in this Paragraph (hereinafter referred to as the “Covered Conduct”) subjects
Respondent to civil monetary penalties, assessments, and exclusion under 42 U.S.C. §§
1320a-7a and 1320a-7(b)(7).
3.
No Admission or Concession. This Agreement is neither an admission of
liability by Respondent nor a concession by the OIG that its claims are not well-founded.
4.
Intention of Parties to Effect Settlement. In order to avoid the uncertainty
and expense of litigation, the Parties agree to resolve this matter according to the Terms
and Conditions below.
II. Terms and Conditions
5.
Payment. Respondent agrees to pay to OIG $1,050,629.81 (Settlement
Amount), of which $700,419.87 is restitution. This payment shall be made by electronic
funds transfer pursuant to written instructions provided by the OIG. Respondent shall
make full payment no later than three business days after the Effective Date.
6.
Release by the OIG. In consideration of the obligations of Respondent
under this Agreement and conditioned upon Respondent’s full payment of the Settlement
2
Amount, the OIG releases Respondent from any claims or causes of action it may have
against Respondent under 42 U.S.C. §§ 1320a-7a and 1320a-7(b)(7) for the Covered
Conduct. The OIG and HHS do not agree to waive any rights, obligations, or causes of
action other than those specifically referred to in this Paragraph. This release is
applicable only to the Respondent and is not applicable in any manner to any other
individual, partnership, corporation, or entity.
7.
Agreement by Released Parties. Respondent shall not contest the
Settlement Amount or any other term of this Agreement in any federal, state, or
administrative forum. Respondent waives all procedural rights granted under the
exclusion statute (42 U.S.C. § 1320a-7), the CMPL (42 U.S.C. § 1320a-7a) and related
regulations (42 C.F.R. Part 1003), and HHS claims collection regulations (45 C.F.R. Part
30), including, but not limited to, notice, hearing, and appeal with respect to the
Settlement Amount.
8.
Reservation of Claims. 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 Respondent) are the following:
a. Any criminal, civil, or administrative claims arising under Title 26 U.S.
Code (Internal Revenue Code);
b. Any criminal liability;
c. Except as explicitly stated in this Agreement, any administrative
liability, including mandatory exclusion from Federal health care programs;
d. Any liability to the United States (or its agencies) for any conduct other
than the Covered Conduct.
9.
Binding on Successors. This Agreement is binding on Respondent and its
successors, heirs, transferees, and assigns.
10.
Costs. Each Party to this Agreement shall bear its own legal and other
costs incurred in connection with this matter, including the preparation and performance
of this Agreement.
11. No Additional Releases. This Agreement is intended to be for the
benefit of the Parties only, and by this instrument the Parties do not release any claims
against any other person or entity, except as provided in paragraph 12.
12. Claims Against Beneficiaries. Respondent waives and shall not seek
3
payment, including copay and deductible amounts, 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
Covered Conduct.
13. Effect of Agreement. This Agreement constitutes the complete agreement
between the Parties. All material representations, understandings, and promises of the
Parties are contained in this Agreement. Any modifications to this Agreement shall be
set forth in writing and signed by all Parties. Respondent represents that this Agreement
is entered into with advice of counsel and knowledge of the events described herein.
Respondent further represents that this Agreement is voluntarily entered into in order to
avoid litigation, without any degree of duress or compulsion.
14. Effective Date. The Effective Date of this Agreement shall be the date of
signing by the last signatory.
15. Disclosure. Respondent consents to the OIG’s disclosure of this
Agreement, and information about this Agreement, to the public.
16. Execution in Counterparts. This Agreement may be executed in
counterparts, each of which constitutes an original, and all of which shall constitute one
and the same agreement.
17. Authorizations. The individuals signing this Agreement on behalf of the
Respondent represent and warrant that they are authorized by Respondent to execute this
Agreement. The individuals signing this Agreement on behalf of the OIG represent and
warrant that they are signing this Agreement in their official capacities and that they are
authorized to execute this Agreement.
4
RESPONDENT
____________________________
_____________
Greg Ruiz
Date
Deputy City Manager
City of Tempe
____________________________
_____________
Scott Jocken
Date
Page, Wolfberg & Wirth, LLC
Attorneys for Respondent
FOR THE OFFICE OF INSPECTOR GENERAL OF THE
DEPARTMENT OF HEALTH AND HUMAN SERVICES
____________________________
_____________
Spencer Turnbull
Date
Acting Assistant Inspector General for Legal Affairs
Office of Counsel to the Inspector General
Office of Inspector General
U.S. Department of Health and Human Services
____________________________
_____________
Eula K. Taylor
Date
Paralegal Specialist
Office of Counsel to the Inspector General
Office of Inspector General
U.S. Department of Health and Human Services