(Photo courtesy of Paramedics Plus)

A company with ties to the former East Texas Medical Center has settled a federal kickback lawsuit.

Paramedics Plus LLC reached a settlement with the federal government on Feb. 28, according to court filings.

An Oklahoma agency that also was named as a defendant in the case reached a settlement on March 28, according to court filings.

The U.S. District Court for the Eastern District of Texas granted all parties in the case a 60-day review period to consider the settlement of the case, according to court filings.

Paramedics Plus was a subsidiary of the East Texas Medical Center health system that provided emergency medical services to an Oklahoma agency called Emergency Medical Services Authority.

In January 2017, the Department of Justice filed suit against Paramedics Plus and the other defendants in the case alleging that Paramedics Plus paid more than $20 million in kickbacks to the Oklahoma agency.

The Department of Justice alleged that Paramedics Plus had created a “slush fund” to pay the kickbacks. The company denied paying kickbacks and unsuccessfully sought to have the case dismissed.

In March 2017, the East Texas Medical Center health system announced it would merge Paramedics Plus with a similar subsidiary and spin off the two emergency medical services entities into a new company.

A month ago, the East Texas Medical Center health system completed a deal to sell its assets to Ardent Health Services, based in Tennessee, and the University of Texas system. The new entity is now called UT Health East Texas.

Three weeks later, UT Health East Texas announced it would lay off about 400 employees, or 5 percent of its workforce, as part of a plan to bring the new health care system toward financial stability.

The terms of the two settlements are not yet available in federal court filings, but The Associated Press reports that the March 28 settlement with Emergency Medical Services Authority in Oklahoma includes a payment of $300,000.

The Tulsa World reports that the board of trustees for Emergency Medical Services Authority, which functions as a public trust for Oklahoma City and Tulsa, unanimously approved the settlement during a special meeting Monday.

Federal officials said in court filings last week that a settlement had been reached in principle with Emergency Medical Services Authority and its former president and CEO, Stephen Williamson, according to The Associated Press.

A spokeswoman for U.S. Attorney Joseph Brown, whose Eastern District of Texas office brought the lawsuit, declined to comment to The Associated Press on the settlement.

Emergency Medical Services Authority Trust Chairwoman Jan Slater says pretrial filings contain “clear evidence” that there never was any fraud, The Associated Press reports.

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