Suit Against Former New Mexico Hospital COO to Proceed

A U.S. District Court judge has denied a motion by Richard Crabtree, former COO of St. Vincent Hospital in Santa Fe, N.M., seeking the dismissal of a civil suit against him on grounds that the statute of limitations had expired before the case was filed, according to a New Mexican report.

Mr. Crabtree was indicted on felony charges in February. From 2002 until his firing in 2008, he allegedly conspired with his then-girlfriend, Loretta Mares, to defraud the hospital — now called Christus St. Vincent Regional Medical Center — of about $3 million. The two allegedly bilked the money by funneling it into technology companies owned in part by Ms. Mares and her brothers. Mr. Crabtree allegedly received kickbacks in return.

The Great American Insurance Company, the hospital's insurance entity and defendant in the case, claims Mr. Crabtree and Ms. Mares' alleged scheme collected at least $3.2 million.

A jury trial is scheduled to take place in May 2013.

More Articles on Hospital Lawsuits:

Memorial Health Care in Tennessee to Pay $1.28M for Alleged Stark Law Violations
Pacific Health to Pay $16.5M to Settle Kickback Allegations Involving the Homeless
Medical Staff Has No Legal Standing to Sue Hospital, Says Minnesota Judge

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