RALEIGH -- North Carolina's health department has settled litigation with a Durham-based mental health services provider regarding disputed Medicaid payments. The North Carolina Department of Health and Human Services said Tuesday that Dominion Healthcare has agreed to pay the state agency more than $1.6 million in reimbursements. The agreement stems from a state investigation that began in February 2007. It requires that the state manually review Dominion's compliance with Medicaid requirements. The state's mental health division has led at least three investigations of Dominion since 2006. After a series of financial reviews, the state department determined that Dominion had improperly provided services or improperly billed Medicaid. (Copyright 2008 by The Associated Press. All Rights Reserved.)