I. PARTIES ‘This Settlement Agreement (Agreement) is entered into among the United States of America, acting through the United States Department of Justice and on behalf of the Office of Inspector General (“OIG-HHS”) of the Department of Health and Human Services (“HHS”); ‘TRICARE Management Activity (“IMA”), through its General Counsel; the Office of Personnel Managment (“OPM”), which administers the Federal Employees Health Benefits Program (‘FEHBP”)(ollectively the “United States”), and the state of Maryland, through the Attorney General for the State of Maryland; Robin L. Emick and Margaret E, Mayer (“Relators”); and Johns Hopkins Bayview Medical Center, Ine, (hereinafter referred to as “Bayview” or “the Settling Defendant”) (hereafter collectively referred to as “the Parties”), through their authorized representatives, 1, PREAMBLE Asa preamble to this Agreement, the Parties agree to the following: A. Bayview is a Maryland corporation with its offices in Baltimore, Maryland. Bayview, as relevant to this Settlement, is in the business of providing acute inpatient care at its facility in Baltimore, Maryland, B, The Relators, Margaret I. Mayer and Robin L, Emrick are residents of the State of Maryland. On July 26, 2007, Relators filed a qui tam action in the United States District Court for the Distriet of Maryland captioned U.S. ex rel. Margaret E. Mayer and Robin L. Emrick v. Johns Hopkins Bayview Medical Center, ef al., Civil Action No, WDQ-07-2011 (hereinafter “the Complaint”) alleging that the Settling Defendant violated the False Claims Act by submitting false or fraudulent claims to federal health benefits programs for reimbursementbased upon rates that were inflated by false representations made to the Health Services Cost Review Commission (“HSCRC”) about Bayview"s case mix. Margaret E, Mayer and Robin L. Emrick are or were employed by Bayview either directly or through other contractors on. Bayview’s behalf as inpatient coding specialists, C. The United States and the State of Maryland contend that Bayview submitted or caused to be submitted false or fraudulent claims for payment to the Medicare Program (Medicare), Title XVIII of the Social Security Act, #2 U.S.C. §§ 1395-139Shhh; the TRICARE Program, 10 U.S.C. §§ 1071-1109; the Federal Employees Health Benefit Program (FEHBP), 5 U.S.C. §§ 8901-8914; and the Maryland Medicaid Program (Medicaid), 42 U.S.C. §§ 1396-1396y (hereinafter referred to as “the federal health benefits programs”). D. The United States contends that it has certain eivil claims, as spec Paragraph 2, below, against Bayview for engaging in the following conduct during the period from July 1, 2005 to February 28, 2007; Bayview submitted or caused to be submitted false or fraudulent claims to the federal health benefits programs that were reimbursed based upon rates that were inflated as the result of false statements made by Bayview to the HSCRC about iew’s case mix severity and included false statements that certain conditions existed that ‘were not actually diagnosed or treated during patients’ admissions to Bayview, as follows: (1) with respect to the 721 patient records that are listed on Attachment A to a letter provided by counsel for the Government to counsel for Bayview on or before the effective date of this Agreement, this agreement releases all liability for any increased reimbursement to Bayview that resulted fiom the addition of secondary diagnosis that should not have been added because the conditions were not diagnosed or treated during the paticnts admission to Bayview; (2) withrespect to all other inpatient stays during the aforementioned time period, this release extends only {0 those claims that were coded as having the secondary diagnosis of malnutrition or aeute respiratory failure (hereinafter referred to as the “Covered Conduct”) BE, The United States also contends that it has certain administrative claims against Bayview for engaging in the Covered Conduct, Bayview denies the allegations and contentions contained in the Complaint. This Agreement is neither an admission of liability by Bayview nor a concession by the United States and the State of Maryland that their claims are not well founded. G. To avoid the delay, uncertainty, inconvenience, and expense of protracted litigation of the above claims, the Parties reach a full and final settlement pursuant to the Terms and Conditions below. Ill, TERMS AND CONDITIONS 1. a. Bayview agrees to pay to the United States Two Million Seven Hundred and Fifty Thousand U.S. Dollars (62,750,000.00) (the “Settlement Amount”). b, _ Bayview further agrees to pay Relators Twenty Five Thousand Dollars (825,000.00) for expenses and attorney's fees and costs to Lon C. Engel, Esq., Engel & Engel, P.A., 11 Bast Lexington Street, Suite 200, Baltimore, MD 21202. The foregoing payments shall be made as follows: c. Bayview agrees to pay the full Settlement Amount to the United States by electronic funds transfer pursuant to written instructions to be provided by the United States Attomey’s Office. Bayview agrees to make this electronic funds transfer no later than ten (10) days after the Effective Date of this Agreement.