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Navajo Hospital Wins $200 Million Lawsuit Against Federal Government

A private hospital on the Navajo Nation will receive $200 million in a historic settlement reached with the federal government.

Ahmad Razaghi is the CEO of the company that manages several hospitals in Indian Country, including Sage Memorial Hospital in Ganado, Arizona.

Razaghi said over the last decade the Indian Health Service’s area office has tried to shut down the Navajo Nation hospital. He said the IHS defamed the Navajo board of directors, and cut off pharmaceutical supplies and medical malpractice insurance.

“They illegally terminated its federal funding that represents about 50 percent of the revenue on one day’s notice,” Razaghi said. “And then funneling those funds that were set aside by Congress for this tribal hospital back to Indian Health Service’s area office.”

Sage Memorial receives half of its revenue from Medicare and Medicaid and the other half from the IHS.

In February, the U.S. Government Accountability Office called the Indian Health Service program at risk and in need of reform. 

Laurel Morales was a Fronteras Desk reporter in Flagstaff from 2011 to 2020.