Civil Investigative Demand

3 Months Ended

Mar. 31, 2015

Civil Investigative Demand

Civil Investigative Demand

9.Civil Investigative Demand

On August 25, 2011, we received a Civil Investigative Demand issued by the U.S. Department of Justice, Western District of Washington.  The CID stated that it was issued in the course of an investigation under the Federal False Claims Act and sought documents for the period January 1, 2007 through the date of the CID.  The CID indicated that the investigation concerned allegations that we may have used inappropriate diagnosis codes when submitting claims for payment to Medicare for our real-time, MCOT™ services.  During the second quarter of 2014, we reached an agreement in principle for a potential settlement and a non-operating charge of $6,400 was recorded in the first half of 2014.  This reserve was recorded to “Interest and other loss, net” in the consolidated statements of operations and is included in “Accrued liabilities” on the balance sheet as of December 31, 2014.  During the first quarter of 2015, the settlement agreement was finalized and we paid $6,400 to the Department of Justice, which resulted in a reduction in “Cash and cash equivalents” and “Accrued liabilities” on the balance sheet as of March 31, 2015.