FOR IMMEDIATE RELEASE
Howard Brown Health Center (HBHC) Reaches Settlement with Government Agencies
Agreement Allows HBHC to remain in "good standing" with government
Chicago, Ill (Friday, March 30, 2012) – Following a transparent and cooperative investigation, Howard Brown Health Center (HBHC) has reached a settlement with the federal government to repay funds associated with five (5) federally awarded grants. The government concluded the funds were misused by the previous HBHC administration during the period between 2005 and 2010. The federal agencies to be repaid include the Centers for Disease Control and Prevention (CDC), the National Institutes of Health (NIH), and the Health Resources and Services Administration (HRSA).
The repayment consists of one-time payments of $53,924 to the CDC, and $86,076 to HRSA that were made today. Over the next three years, three annual payments totaling $575,000 will be made to the NIH in accordance with the terms of the agreement. In all, $715,000 will be repaid resulting from the negotiated settlement reached today. This settlement was reached, in part, because HBHC's new leadership demonstrated it was "presently responsible" and that the past mismanagement would not continue. As a result of prudent financial management over the last 18 months, HBHC is confident in its ability to generate sufficient cash flow from existing operations to meet the payment terms of the agreement and continue to deliver a high quality of service to patients and clients.
Jamal M. Edwards, HBHC’s president and CEO said, "We are happy to have a final agreement with the federal government that upon repayment will put the issues generated by this situation in the past. Howard Brown Health Center has an extraordinarily bright future and we are pleased that the government has made the decision to allow us to continue to fulfill our mission. The agreement is more than fair and we are extremely thankful for the continued confidence the federal government is placing in us."
As part of the settlement’s terms, Howard Brown Health Center will remain in "good standing" with the federal government, which will enable the organization to continue to apply for and receive future grants and contracts from federal agencies.
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About Howard Brown Health Center
Founded in 1974, Howard Brown Health Center (HBHC) is one of the nation's largest health care and research organizations, primarily serving the lesbian, gay, bisexual, and transgender (LGBT) community and its allies. It is the largest such organization in the Midwest and serves more than 36,000 adults and youth each year throughout the region. An innovative and patient-centered health home, HBHC provides primary medical care, behavioral health services, and specialty chronic and infectious disease services, and conducts nationally-renowned clinical and behavioral research.