It’s been a while since we have had any IHHI news but it rocked the news wires quite a bit a few years back.  There was a bit of everything here with the case of the hospital CEO setting up the Internal Med Physician.  You can catch up at the link below on more of the story but the award mentioned was taken away due to the fact that later it was said the hospital was not responsible for the CEO’s action.  Well that has been reversed so the award stands. 

Jury Orders IHHI Hospital Chain to Pay Doctor $5.2 Million As Former Executive Planted a Gun and Gloves in the Doctor’s Car As a Set Up - The Case Filed in 2006 Finally Reaches Closure
IHHI Hospital exec framed doctor on gun charge, lawsuit says – Orange County CA

How often do you read about a CEO hiring a bunch of thugs to set up a doctor.  Not too often but this CEO was psychopath imageof sorts.  In the entire saga, there was more than that as FINRA was involved as the investor was in the porn business, taking out some money from that end and chartering expensive yacht tours and more. 

FINRA Sanctions Firms for Selling Interests in Troubled Companies, One in the OC, Capital Holdings Financed IHHI–Chain of 8 Hospitals in the OC–Guns, Porn You Name It All Here
SEC Investigation Finds Medical Capital Holdings Diverting Investor Funds to Pornography and Other Businesses Aided by Former IHHI President – Orange County

The owner that created all the fuss with the doctors was out for a while and then when money got tight, he got back in.  When the initial stir began all were afraid Chaudhuri was going to bleed the place dry.  He came back with a Hedge Fund backing him, interesting is it not?

Control of IHHI Hospital Chain Returns to Kali P. Chaudhuri in Orange County Backed by a Hedge Fund - Some Are Nervous

At the hospitals, while this was going on, many went day to day not knowing if they would or would not have a job. 

Medical Capital Holdings Closed by Federal Judge –IHHI Hospitals Waiting Outcome
Larry Anderson quits as president of hospital owner IHHI - Orange County, CA

Like I said it’s quite the story that evolved, when the hospital system got new financing, the blew some of it on porn.  Anyway, most of that seems to be behind this small hospital chain now as far as I know.  The doctor’s victory was a good one indeed.  If you read some of the past articles you can tell that the hospital was siding the the CEO on some of this in an effort to shut down the physicians on staff who were protesting working conditions and then some.  The CEO of the entire system quits and then they hire him back as a consultant?  Strange stuff indeed so it looks like the Hedge Fund here could take hit with the fine.   BD 


TUCSON, Ariz., May 4, 2015 /PRNewswire-USNewswire/ -- Physician Michael Fitzgibbons, M.D., was awarded $5.2 million by a jury in compensation for distress he experienced because a hospital CEO had a loaded firearm planted in his car, occasioning his arrest, and had a tire slashed on his car, causing a serious accident while his daughter was driving on the freeway.

Dr. Fitzgibbons had opposed actions taken by Integrated Healthcare Holdings, Inc., on the grounds that he believed they would jeopardize patient safety. The trial jury found that IHHI's CEO Bruce Mogel, in retaliation, carried out threats to "humble" Fitzgibbons. Mogel told IHHI president Larry Anderson that he "could have [things] done to people who displeased him." For example, he told Anderson he knew people who would kidnap the wife or daughter of another person with whom they were having an ongoing business dispute.

The trial court then overturned the jury's verdict. IHHI argued that it should not be held liable for its CEO's conduct. "The hiring of a thug was a 'startling and unusual…occurrence.' There was no relationship between the nature of his work and the tort committed…. The alleged attack on Fitzgibbons was not reasonably foreseeable in the light of Mogel's responsibilities."

http://www.prnewswire.com/news-releases/aaps-52-million-jury-verdict-against-hospital-reinstated-300076709.html

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