Boston-based Lahey Hospital & Medical Center claims a contract it had with Bermuda's former premier Ewart F. Brown, MD, was routine, but the island's attorney general disagrees, according to the Boston Business Journal.
Bermuda's attorney general filed a lawsuit against Lahey in February accusing the hospital group of bribing Dr. Brown in exchange for preferential treatment in winning government healthcare contracts. In an interview with The Boston Globe in February, Dr. Brown defended his 20-year relationship with Lahey, claiming the lawsuit is racially and politically motivated.
Lahey subsequently filed a motion to dismiss the lawsuit, which contained copies of the contract between Lahey and Dr. Brown. In its motion to dismiss, Lahey calls the contract a "routine business arrangement." However, Bermuda's lawyers argue that Lahey violated the federal Foreign Corrupt Practices Act, which makes it illegal for certain entities to pay foreign government officials to assist in obtaining business, when it entered into the agreement.
"Simply put, Lahey is free to hire consultants to help it develop business in Bermuda, but not if those consultants are foreign government officials retained to secure an improper advantage over its competitors," the court filing states, according to the Boston Business Journal.
Lahey spokesman Christopher Murphy told the Boston Business Journal the system's agreement with Dr. Brown is being misrepresented for political reasons. "Lahey Hospital & Medical Center professional relationships, consulting agreements and business practices are fully compliant with all applicable laws and regulations and beyond reproach," he said.
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