"The hospital did not overbill patients, upcode, charge for services that never occurred or provide inadequate care," said Mary Masten, Regional Hospital General Counsel."There was no financial harm to the Medicare program or our patients."In addition to the payment, Rapid City Regional said it has also agreed to provide greater oversight of the hospital's relationships with physicians.

Mary Masten, general counsel for Rapid City Regional Hospital, said the suit appears to be a copy-cat complaint patterned after the Scruggs litigation."By all appearances, there weren't any adjustments made to it to make it unique that I can see," she said."It doesn't appear that any research was done."She said Regional Hospital provides medical care to everyone regardless of their ability to pay.She said all patients are charged the same prices, but Medicare and Medicaid programs set reimbursement limits, and some insurance companies have agreements with Regional Hospital that result in lower payment.Emergency room patients - if they are able - are given a consent form to sign, Masten said.The hospital could write off all or part of the bill, Masten said."Regional Hospital and its board are responsible for assuring there is accessible, affordable health care available to western South Dakota," Masten said.

Mary Masten, vice president of legal services for Regional Health, said the medical tax exemptions help keep the cost of health care down. "Like any other business, I would presume that you try to pass on the sales tax that you pay to your customers," Masten said.