The following six lawsuits involving executives were reported within the past month, beginning with the most recent.
1. 5 Former Executives of Tampa's WellCare Health Charged for Medicaid Fraud
Five former executives of Tampa-based WellCare Health Plans have been indicted for allegedly defrauding the Florida Medicaid program by producing false documents to inflate the costs of behavior health services. The former executives indicted are CEO Todd Farha; general counsel Thaddeus Bereday; CFO Paul Behrens; vice president of Harmony Behavioral Health, a WellCare subsidiary, William Kale; and vice president of medical economics Peter Clay.
2. Obstetrician Sues Pennsylvania Hospital's Former CEO For Defamation
An obstetrician formerly employed by Ohio Valley General Hospital in McKees Rocks, Penn., is suing the hospital's former president and CEO for defamation. Paul M. Zubritzky, MD, filed a suit in the Allegheny County Court of Common Pleas claiming former CEO William F. Provenzano sent a memo to department directors saying Dr. Zubritzky had been suspended and banned from the hospital. Dr. Zubritzky says Mr. Provenzano did not follow proper suspension procedures and interfered with his practice.
3. Former CEO of Mississippi's Tri-Lakes Medical Center Accused of Kickbacks, Embezzlement
The former CEO and COO of Tri-Lakes Medical Center in Batesville, Miss., has been accused of involvement in kickbacks and bribery conspiracy, among other federal charges. Raymond L. Shoemaker of Tupleo, Miss., has been charged with conspiracy to commit and committing healthcare fraud, making false claims to the FBI in connection with a federal investigation, making false statements to the U.S. Department of Agriculture in connection with a loan, embezzlement from the medical center and receiving kickbacks for nursing services.
4. Board of New York's MediSys Fires CEO Facing Federal Bribery Charges
The board of MediSys Health Network, parent company to four New York hospitals, has fired CEO David Rosen as he faces bribery charges in a federal corruption case. Mr. Rosen has been replaced with his second-in-command, Bruce J. Flanz. The government alleges that New York Senator Carl Kruger accepted approximately $1 million in bribes from Mr. Rosen and others since 2006. In exchange, Mr. Rosen allegedly received favorable treatment towards his healthcare organization from state officials.
5. California Hospital Settles Former CEO's Claims of Breach of Contract, Emotional Distress
Community Memorial Hospital in Ventura, Calif., and Michael Bakst have settled a lawsuit filed by the former CEO that claimed the hospital caused him emotional distress and irreparably damaged his career. The suit, filed in federal court in Los Angeles in Nov. 2009, has been settled out of court for an undisclosed amount. Both CMH and Mr. Bakst declined to comment due to confidentiality. The suit stemmed from a separation agreement, signed by Mr. Bakst and CMH trustee Gary Wolfe, that prohibited either party from making disparaging remarks about one another following Mr. Bakst's departure from CMH in 2003. Mr. Bakst claimed the hospital violated that agreement.
6. North Carolina's Haywood Regional Medical Center Pays Former CEO $150,000, Settles Lawsuit
Clyde, N.C.'s Haywood Regional Medical Center will pay former CEO David Rice $150,000 in an out-of-court settlement. Mr. Rice publicly resigned in 2008 after HRMC lost its Medicare and Medicaid status, causing a loss of $10 million. Mr. Rice filed a lawsuit in 2010 claiming he was fired without cause and cheated out of promised payment. The hospital had filed a countersuit claiming they did not fire Mr. Rice but would have had sufficient cause to do so. According to the report, the hospital settled to end the long-lasting conflict and to avoid continuing to pay attorneys.
1. 5 Former Executives of Tampa's WellCare Health Charged for Medicaid Fraud
Five former executives of Tampa-based WellCare Health Plans have been indicted for allegedly defrauding the Florida Medicaid program by producing false documents to inflate the costs of behavior health services. The former executives indicted are CEO Todd Farha; general counsel Thaddeus Bereday; CFO Paul Behrens; vice president of Harmony Behavioral Health, a WellCare subsidiary, William Kale; and vice president of medical economics Peter Clay.
2. Obstetrician Sues Pennsylvania Hospital's Former CEO For Defamation
An obstetrician formerly employed by Ohio Valley General Hospital in McKees Rocks, Penn., is suing the hospital's former president and CEO for defamation. Paul M. Zubritzky, MD, filed a suit in the Allegheny County Court of Common Pleas claiming former CEO William F. Provenzano sent a memo to department directors saying Dr. Zubritzky had been suspended and banned from the hospital. Dr. Zubritzky says Mr. Provenzano did not follow proper suspension procedures and interfered with his practice.
3. Former CEO of Mississippi's Tri-Lakes Medical Center Accused of Kickbacks, Embezzlement
The former CEO and COO of Tri-Lakes Medical Center in Batesville, Miss., has been accused of involvement in kickbacks and bribery conspiracy, among other federal charges. Raymond L. Shoemaker of Tupleo, Miss., has been charged with conspiracy to commit and committing healthcare fraud, making false claims to the FBI in connection with a federal investigation, making false statements to the U.S. Department of Agriculture in connection with a loan, embezzlement from the medical center and receiving kickbacks for nursing services.
4. Board of New York's MediSys Fires CEO Facing Federal Bribery Charges
The board of MediSys Health Network, parent company to four New York hospitals, has fired CEO David Rosen as he faces bribery charges in a federal corruption case. Mr. Rosen has been replaced with his second-in-command, Bruce J. Flanz. The government alleges that New York Senator Carl Kruger accepted approximately $1 million in bribes from Mr. Rosen and others since 2006. In exchange, Mr. Rosen allegedly received favorable treatment towards his healthcare organization from state officials.
5. California Hospital Settles Former CEO's Claims of Breach of Contract, Emotional Distress
Community Memorial Hospital in Ventura, Calif., and Michael Bakst have settled a lawsuit filed by the former CEO that claimed the hospital caused him emotional distress and irreparably damaged his career. The suit, filed in federal court in Los Angeles in Nov. 2009, has been settled out of court for an undisclosed amount. Both CMH and Mr. Bakst declined to comment due to confidentiality. The suit stemmed from a separation agreement, signed by Mr. Bakst and CMH trustee Gary Wolfe, that prohibited either party from making disparaging remarks about one another following Mr. Bakst's departure from CMH in 2003. Mr. Bakst claimed the hospital violated that agreement.
6. North Carolina's Haywood Regional Medical Center Pays Former CEO $150,000, Settles Lawsuit
Clyde, N.C.'s Haywood Regional Medical Center will pay former CEO David Rice $150,000 in an out-of-court settlement. Mr. Rice publicly resigned in 2008 after HRMC lost its Medicare and Medicaid status, causing a loss of $10 million. Mr. Rice filed a lawsuit in 2010 claiming he was fired without cause and cheated out of promised payment. The hospital had filed a countersuit claiming they did not fire Mr. Rice but would have had sufficient cause to do so. According to the report, the hospital settled to end the long-lasting conflict and to avoid continuing to pay attorneys.