New York Authorities to MediSys Boards: Why Wasn't Bribing CEO Ousted Sooner?

New York state authorities are investigating the boards linked to MediSys Health Network's former CEO David Rosen, who has been charged for bribery, to determine whether the trustees violated ethical business practices, according to a Crain's New York Business report.

The board of trustees fired Mr. Rosen last week. However, they declined to suspend or fire him after he was implicated in the bribery and corruption indictment of Assemblyman Anthony Seminerio in Sept. 2008. The state Department of Health and the Office of the Medicaid Inspector General both want to know why the boards didn't act sooner.  

Unlike the state Health Department, OMIG has the power to replace boards.  They can investigate compliance failures and take action, including the censure and exclusion of board members.

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, which is parent to four New York hospitals.

Read the Crain's New York Business report on the boards of MediSys.

Read more about David Rosen.

- Board of New York's MediSys Fires CEO Facing Federal Bribery Charges

- New York Senator Allegedly Accepted Bribes From Prominent Hospital Executives




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