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DC reaches deal to pay back health providers

Thursday - 6/27/2013, 5:30pm  ET

WASHINGTON (AP) -- The District of Columbia has reached a tentative deal to pay back health care providers who've been stuck with unpaid bills since the collapse of the company that managed the city's Medicaid claims.

Mayor Vincent Gray announced Thursday that hospitals and community-based health providers will be reimbursed for $47 million in unpaid claims by the end of August.

The providers haven't been paid since D.C. Chartered Health Plan went bankrupt. The company was owned by Jeffrey Thompson, a politically connected businessman who's the subject of a wide-ranging federal investigation. Thompson is suspected of funneling $650,000 in illicit funds into Gray's 2010 campaign.

Before it went bankrupt, Chartered had held the largest single contract in city government, worth more than $300 million annually.

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