A civil claims suit in 2001 alleged that Vencor knowingly submitted false claims to Medicare, Medicaid, and TRICARE, the military's health care program. Vencor maintained that they had committed no wrongdoing and continued to dispute the claims until after Lunsford left the company. Vencor later settled the case for $104.5 million, including $54 million for alleged improper claims in Medicare cost reports, $24 million for alleged overbilling in respiratory care services, and $20 million for alleged failure of care claims. The company did not admit any wrongdoing in the settlement.