Navajo Sage Hospital Wins Historic $200 Million Settlement Against IHS

Navajo Sage Hospital

Published October 6, 2017

GANADO ARIZONA – Navajo Health Foundation – Sage Memorial Hospital, Inc. (“Navajo Sage”) is pleased to announce that it has concluded an agreement to settle its multi-year lawsuit against Indian Health Services (“IHS”) and other federal government defendants related to a dispute over funding to Navajo Sage for health care services within the Navajo Nation. Under the terms of the settlement agreement, Navajo Sage will receive close to $200,000,000 over three years. The settlement includes a sizeable up-front cash payment, with additional revenues provided through a new three year P.L. 93-638 Indian Self-Determination and Education Assistance Act (“ISDEAA”) contract for the continued provision of health care services by Navajo Sage to the Diné, and other considerations.

“This is a significant agreement for Navajo Sage and IHS,” said Stenson D. Wauneka, Chair Navajo Sage. “We are no longer adversaries and we can move forward and build our relationship to improve healthcare within the Navajo Nation.” Mr. Wauneka also stated that the settlement will not reduce funding to other Navajo Nation hospitals because the up-front cash payment does not come out of IHS’ budget.

Navajo Sage will have additional statements in the near future about its health care system master plan and expansion of services.

The Navajo Sage Board of Directors and Management are grateful for the support and trust of the community as Sage worked to resolve this dispute and increase the level of health care provided within the Navajo Nation.

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