LITTLE ROCK, Ark. – Arkansas Attorney General Tim Griffin’s office has settled with a northwest Arkansas hospital chain for over $1 million in Medicaid claims.

In the settlement, Northwest Arkansas Hospitals LLC will repay the state’s Medicaid programs $1,112,631.54 after an investigation by the AG’s office. The investigation led to an audit by the Arkansas Foundation for Medical Care that found 246 instances of unjustified medical necessities for hospitalization.

The claims were based upon work by Dr. Brian Hyatt and non-physician providers under his control, the AG said. At the time, Hyatt was a contractor with the hospital chain.

Northwest denied knowingly violating the law in the settlement but did acknowledge that Hyatt’s record templates were flawed.

Griffin said the investigation involved multiple agencies, including his office’s Medicaid Fraud Control Unit, the Arkansas Medicaid Inspector General Office and an agent from U.S. Department of Health and Human Services Office of Inspector General’s Office of Investigation.