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Feds Investigating Kalispell Hospital Over Doctor Pay


KALISPELL, Mont. (AP) — Kalispell Regional Healthcare is under federal investigation over "compensation to certain physicians" and recently told employees it has set aside $21.5 million for a potential settlement.

Hospital spokeswoman Mellody Sharpton told the Flathead Beacon she couldn't provide details on the allegations, but the hospital denies any wrongdoing.

The Office of Inspector General of the U.S. Department of Health and Human Services declined to comment on the investigation.

Hospital attorney William Gibson told the Beacon on June 13 the hospital was negotiating a settlement.

The hospital has a substantial year-to-date deficit, but Sharpton couldn't confirm the exact total.

Kalispell Regional has three major building projects going on and expects to lose about $6.6 million due to state cuts in Medicaid reimbursement rates. The hospital recently laid off less than 40 employees due to the state cuts.


This story has been corrected to show the hospital recently laid off less than 40 employees.


Information from: Flathead Beacon,

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