City of Lubbock settles health management suit - KCBD NewsChannel 11 Lubbock

City of Lubbock settles health management suit

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LUBBOCK, TX (KCBD) -

KCBD NewsChannel 11 has confirmed that the City of Lubbock has reached a settlement with businessman Ted Parker. The settlement is contingent upon City Council approval. Mayor Tom Martin says he will call a special meeting of the City Council for Monday to talk about the settlement and take a vote. 

Martin would not confirm the amount of the settlement except to say it's a multimillion-dollar deal. Sources who do not wish to be named told KCBD NewsChannel 11 that the City was negotiating with Parker's company to get $3 million or $4 million.

Back in 2006, the City accused Parker and his company AAG of mismanaging the City's health insurance. Parker admitted overpayments to certain health providers with City money. But he always denied any intentional wrongdoing. Sources say the City dropped the fraud allegations as part of the settlement. 

Parker no longer controls the company, and it has since changed names. Parker's company did not provide health insurance to the City. The City was self-insured, but Parker's company did the paperwork and orchestrated payments from the City to various healthcare providers.

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