California hospital district collects $3M in settlement with former attorney

The Tulare (Calif.) Local Healthcare District will receive a $3 million settlement from its former attorney Bruce Greene, whose law firm allegedly breached its fiduciary duty and was professionally negligent under Tulare's previous ownership, according to The San Joaquin Valley Sun.

Five things to know:

1. Mr. Greene was an executive at hospital management firm Healthcare Conglomerate Associates when it operated the former Tulare Regional Medical Center from 2013 to 2017, according to the report. The hospital district sued the attorney over a resolution he allegedly drafted that allowed HCCA to seek $22 million in loans on the district's behalf and use the hospital as collateral.

2. Mr. Greene was accused of being professionally negligent by not disclosing potential conflicts of interest when he was representing HCCA.

3. The Tulare County District Attorney has also filed criminal charges against Mr. Greene and HCCA CEO Yorai "Benny" Benzeevi, MD, and CFO Alan Germany. 

4. Three former hospital district board members — Parmod Kumar, Linda Wilbourn and Richard Torrez — were also named in the lawsuit against Mr. Greene for approving the resolution, according to The San Joaquin Valley Sun. They still face an active lawsuit as only Mr. Greene's part was settled.

5. The settlement almost covers all expenses paid to Mr. Greene's firm for its work representing the hospital district, board president Kevin Northcraft told the Valley VoiceThe settlement is not an admission of guilt.

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