California Wrongful Dismissal Lawsuit in “Stark” Contrast
Los Angeles, CA: A California wrongful dismissal lawsuit alleging wrongful termination by a former executive with the Tri-City Medical Center is intertwined amidst a host of allegations involving violations to Stark Law. The latter, which is defined as a limitation on certain physician referrals, has cost the Tri-City Medical Center in excess of $3 million to resolve violations.
The US Department of Justice (DOJ) had been investigating various alleged violations involving agreements for physician compensation and other arrangements viewed as excessive, unbalanced and “appeared not to be commercially reasonable, or for fair market value,” according to a DOJ statement. In announcing the resolution agreement with the DOJ, Tri-City Medical Center noted the management team that was in place when the aforementioned arrangements were procured and put together is no longer at the helm.
One member of that executive team, former chief compliance officer Steven D. Stein, is continuing with a California wrongful dismissal lawsuit that began as a complaint filed in 2012 with the US Equal Employment Opportunity Commission. The original complaint asserted numerous allegations, including “retaliation for asserting, or refusing to condone or not report, continuing violations of the Stark Law.”
It appears that Stein may have blown the whistle on the violations to Stark Law, which were numerous at the time - over and above some 92 arrangements with other physicians that failed to qualify for exceptions from Stark Law. Written agreements were found to have expired, were lacking signatures or were missing altogether.
That complaint escalated into a California wrongful termination lawsuit against Tri-City Medical Center, a 400-bed hospital located near San Diego. The lawsuit makes no reference to Stark Law or whistleblowing relative to the issue.
In a statement issued when the settlement with the DOJ was announced, Tri-City said that “The hospital executives that oversaw the contracting are no longer affiliated with Tri-City Medical Center,” the statement said.
“It is unfortunate to have inherited this longstanding legal issue, but we are pleased to have brought it to a successful conclusion,” the statement added.
Amongst the former Tri-City executives to have had the alleged Stark Law violations occur on their watch was former CEO Larry Anderson. He is no longer with the hospital.
There was no reference to any other California wrongful dismissal lawsuit other than that of Stein. The total value of the settlement agreement between Tri-City and the DOJ was reported as $3.3 million.
The California wrongful dismissal lawsuit is Stein v. Tri-City Healthcare District et al, No. 3:2012cv02524 in US District Court, Southern District of California.
The US Department of Justice (DOJ) had been investigating various alleged violations involving agreements for physician compensation and other arrangements viewed as excessive, unbalanced and “appeared not to be commercially reasonable, or for fair market value,” according to a DOJ statement. In announcing the resolution agreement with the DOJ, Tri-City Medical Center noted the management team that was in place when the aforementioned arrangements were procured and put together is no longer at the helm.
One member of that executive team, former chief compliance officer Steven D. Stein, is continuing with a California wrongful dismissal lawsuit that began as a complaint filed in 2012 with the US Equal Employment Opportunity Commission. The original complaint asserted numerous allegations, including “retaliation for asserting, or refusing to condone or not report, continuing violations of the Stark Law.”
It appears that Stein may have blown the whistle on the violations to Stark Law, which were numerous at the time - over and above some 92 arrangements with other physicians that failed to qualify for exceptions from Stark Law. Written agreements were found to have expired, were lacking signatures or were missing altogether.
That complaint escalated into a California wrongful termination lawsuit against Tri-City Medical Center, a 400-bed hospital located near San Diego. The lawsuit makes no reference to Stark Law or whistleblowing relative to the issue.
In a statement issued when the settlement with the DOJ was announced, Tri-City said that “The hospital executives that oversaw the contracting are no longer affiliated with Tri-City Medical Center,” the statement said.
“It is unfortunate to have inherited this longstanding legal issue, but we are pleased to have brought it to a successful conclusion,” the statement added.
Amongst the former Tri-City executives to have had the alleged Stark Law violations occur on their watch was former CEO Larry Anderson. He is no longer with the hospital.
There was no reference to any other California wrongful dismissal lawsuit other than that of Stein. The total value of the settlement agreement between Tri-City and the DOJ was reported as $3.3 million.
The California wrongful dismissal lawsuit is Stein v. Tri-City Healthcare District et al, No. 3:2012cv02524 in US District Court, Southern District of California.
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