LOUISVILLE - A federal prosecutor said that Lt. Gov. Steve Henry wants to discuss a settlement with the government of its planned lawsuit against Dr. Henry for alleged overbilling.

        But in an interview with The Courier-Journal, Dr. Henry said he feels the only fair settlement would be the government acknowledging he owes nothing. The lawsuit has not yet been filed.

Henry

        “I'm just looking for a fair hearing,” said Dr. Henry, who has denied that he knowingly billed Medicare or Medicaid for surgery he didn't perform as an orthopedic surgeon.

        U.S. Attorney Steve Pence said Friday that an attorney for Dr. Henry asked in a letter “that we delay filing the complaint until we give them a chance to discuss settlement with us.” Mr. Pence said Dr. Henry owes the government “tens of thousands” of dollars.

        Scott C. Cox, who wrote the letter, referred questions to Dr. Henry's longtime attorney, Jack Smith, who could not be reached.

        Mr. Smith has said Dr. Henry made “innocent mistakes” and was guilty of “sloppiness,” but didn't try to cheat taxpayers. Dr. Henry said his mistakes are far outweighed by the work he did but did not bill for.

        The move comes at a critical time for Dr. Henry, who is preparing to begin a campaign for the May 2003 Democratic nomination for governor.

        Mr. Pence said earlier this month, after an FBI investigation, that he would not seek criminal charges against Dr. Henry.

        But he did say he would file a lawsuit seeking to recover money from billings by Dr. Henry. On Friday, Mr. Pence said he probably would give Dr. Henry's lawyers the opportunity to discuss a settlement, “though I fully anticipate that we will be filing a complaint,” another term for a lawsuit.

        Mr. Smith, Dr. Henry's attorney, has said the FBI investigation appeared to focus on whether Dr. Henry actually performed or supervised surgery for which he billed Medicare and Medicaid, two federal health insurance programs.

        Similar federal investigations have focused on billings for surgery done by residents under the direct supervision of a physician. Dr. Henry supervises residents at University Hospital in Louisville.

        Dr. Henry said his chief residents generally earn more than he does because he has donated his salary and “millions of dollars worth of free care” to the hospital. He said he wants those contributions to be acknowledged.

        Mr. Pence said Sept. 6 that he would file the civil suit within a month. He extended that deadline Friday, saying, “Certainly I would not go beyond the end of October.”

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