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In a significant healthcare fraud case, MultiCare Health System has agreed to pay more than $3.7 million to settle allegations that it knowingly allowed a neurosurgeon under investigation to perform procedures, despite warnings about patient safety concerns.
The settlement resolves claims that MultiCare permitted Dr. Jason Dreyer to conduct spinal surgeries at its facilities between 2019 and 2021, even after receiving internal warnings from staff and explicit notifications from investigators that the physician was under scrutiny.
According to the Department of Justice, MultiCare ignored “numerous red flags” regarding Dreyer, who was being investigated by Washington’s health department for practicing below medical standards and by federal authorities for fraudulent billing based on falsified diagnoses.
“MultiCare had direct knowledge of the danger Dr. Dreyer posed to patients, including through reports made by its own medical staff, and later from explicit warnings from federal investigators,” said Pete Serrano, first assistant U.S. attorney for the Eastern District of Washington. “MultiCare nonetheless allowed Dr. Dreyer to operate on unsuspecting patients for nearly two years, generating thousands in additional revenue and putting profits before patient safety.”
The case marks the latest development in a broader investigation that has already resulted in settlements with other parties. Dreyer himself settled for $1.2 million in 2023, while his former employer, Providence, agreed to a $22.7 million settlement in 2022.
Court documents reveal that two physician assistants who worked with Dreyer in operating rooms had raised patient safety concerns with MultiCare management. Despite these warnings, the health system allegedly “not only permitted Dr. Dreyer to continue performing surgeries, but further incentivized Dr. Dreyer to perform medically unnecessary surgeries quickly by tying his compensation directly to the number of surgeries he performed and their complexity.”
The DOJ also states that MultiCare had previously reached a settlement agreement in 2023 but withdrew from it, resulting in two additional years of litigation before the current resolution was reached.
MultiCare, however, disputes the government’s characterization of events. In a statement, the 13-hospital nonprofit system said it “firmly disagrees with the government’s conclusions and its characterization of the facts in the government’s press release.” The organization emphasized that the settlement involves no admission of liability or wrongdoing.
“MultiCare is confident in the quality of care provided to our patients and the clinical decision-making of our providers,” said Bill Robertson, MultiCare CEO. “MultiCare vigorously litigated the government’s allegations for nearly two years. The record that developed during that process speaks for itself.”
The health system claimed it agreed to settle to “avoid the cost, distraction and uncertainty of continued litigation.”
According to court records, Dreyer joined MultiCare after resigning from Providence amid misconduct allegations. Washington state subsequently suspended his medical license in early 2021. The DOJ contends that even after federal investigators directly contacted MultiCare with evidence regarding Dreyer’s alleged conduct at Providence, the health system continued to allow him to perform surgeries “with little restriction.”
The case originated from a whistleblower complaint filed by a former patient in April 2022, highlighting the importance of whistleblower provisions in exposing potential healthcare fraud.
Washington Attorney General Nick Brown condemned the alleged violations, saying they “show a wanton disregard for ethics and the medical principle to do no harm.” He described the settlement as “a win for patient safety and protecting public dollars to get people necessary healthcare.”
This case underscores ongoing concerns about healthcare fraud and patient safety oversight within major health systems, particularly when financial incentives may conflict with quality of care standards.
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10 Comments
This case underscores the need for stronger regulatory oversight and enforcement in the healthcare sector. Patients should be able to trust that hospitals are putting their wellbeing first, not prioritizing profits or protecting problematic practitioners. Stricter accountability measures are clearly warranted.
While the financial penalty is substantial, the true cost here is the potential harm done to patients who underwent unnecessary or improper procedures. Rebuilding trust in MultiCare will be an uphill battle, and they must demonstrate a genuine commitment to quality care and patient safety going forward.
Absolutely. Restoring their reputation and regaining the public’s trust will require far more than a monetary settlement. MultiCare needs to be fully transparent, implement robust safeguards, and show a clear shift in priorities and culture.
This is a troubling case of alleged patient safety violations and healthcare fraud. MultiCare’s actions to continue allowing a surgeon under investigation to operate seem highly reckless. Patients put their trust in hospitals to protect them, and this settlement suggests MultiCare failed in that duty.
I agree, MultiCare appears to have prioritized profits over patient wellbeing in this case. Allowing a doctor with known issues to keep operating is unacceptable and raises serious questions about their ethical standards and commitment to quality care.
I’m curious to know more about the timeline and specific events that led to this investigation. What were the initial warning signs, and why did MultiCare seemingly ignore them for so long? Transparency around these details could help shed light on systemic issues that need to be addressed.
Good point. More details on the sequence of events and decision-making process at MultiCare would be valuable. Shedding light on the internal culture and policies that allowed this to occur could inform reforms to prevent similar lapses in the future.
While the $3.7 million settlement is substantial, the real victims here are the patients who may have suffered unnecessary or improper procedures. This type of egregious misconduct should be swiftly and firmly penalized to deter similar actions in the future.
Absolutely. Hospitals must be held accountable when they knowingly jeopardize patient safety. The financial penalty is one thing, but MultiCare should also face serious reputational damage and scrutiny over its practices and priorities.
This case highlights the critical importance of effective oversight and whistleblower protections in the healthcare industry. If MultiCare’s own staff were raising concerns that were ignored, that points to serious flaws in the organization’s internal controls and accountability mechanisms.