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AP - Oregon-Northwest

Oregon to pay $22.5M to settle Medicaid contractor dispute

KTVZ
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Published 5:43 PM

PORTLAND, Ore. (AP) — A long, acrimonious legal battle between state Medicaid contractor FamilyCare Inc. and the Oregon Health Authority has ended with the state agreeing to pay $22.5 million to the company. The Oregonian/OregonLive reports FamilyCare has agreed to donate that money to a medical school in Lebanon, Oregon. It was a Pyrrhic victory for FamilyCare’s founder and CEO Jeff Heatherington who sued the state over rates paid to the company by the state. The company has shrunk from 370 employees to four. The Oregon Health Authority admitted no wrongdoing in the settlement.

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