Omni Healthcare, Inc., a multispecialty medical practice with numerous locations throughout Brevard County, has filed a lawsuit against North Brevard County Hospital District, doing business as Parrish Medical Center, and North Brevard Medical Support, Inc. (NBMS).

Judge Paulk Confirms Whistleblower Protection

In a significant development, Judge Paulk has confirmed that the Whistleblower protection stands in Dr. Craig Deligdish’s complaint about Parrish. This ruling strengthens Omni Healthcare’s position in the lawsuit and emphasizes the importance of whistleblower protections.

The Complaint

Omni Healthcare alleges that the defendants violated the Florida Whistle-blower’s Act, seeking damages in excess of $30,000, exclusive of costs and attorneys’ fees. The complaint includes serious accusations of improper conduct, including improper billing practices, paying physicians excessively, and filing false claims.

Background of the Case

Omni Healthcare has been a key medical provider in Brevard County for almost 30 years. In 2018, Omni and NBMS entered into a Management Services Agreement (MSA). Under this agreement, Omni was designated the “Business Manager,” responsible for managing administrative and business services for NBMS’s medical practice.

Omni’s Allegations

Omni’s complaint details a series of alleged wrongdoings by Parrish, including:

• Improper Billing Practices: Omni claims Parrish failed to collect or bill for required Medicare and Medicaid co-payments and co-insurance amounts, and failed to enter charges into proper systems.
• Excessive Payments to Physicians: According to Omni, Parrish paid physicians in excess of their fair market value based on the volume and value of referrals.
• False Claims for CARES Act Funds: Omni alleges that Parrish filed false claims for funds by allocating and utilizing funds for unapproved uses.
• Failure to Compensate: Omni accuses Parrish of failing to pay performance bonuses under the MSA and other agreements, in violation of various statutes.

Omni alleges that they reported these concerns to Parrish’s compliance officers, including in a conference call, but no corrective actions were taken.

Dr. Deligdish’s Statement

Dr. Craig Deligdish, owner of Omni Healthcare, expressed his frustration, stating:

“Despite notifying Parrish’s administration, their Chief Compliance Officer Anual Jackson, and their Board of Director of my concerns that Parrish may have broken numerous state and federal laws, they and their attorneys refused to investigate my concerns and instead began a campaign to discredit me and OMNI Healthcare and retaliate against me personally, professionally, and financially, and OMNI, as well.”

Retaliatory Actions

Following Omni’s reporting, Parrish allegedly engaged in numerous retaliatory actions, including:

• Termination of Agreements: Parrish allegedly wrongfully terminated the MSA and other agreements, including a lease agreement for the medical office space at which Omni operates the Parrish Cancer Center.
• Threats and Blocking Access: Omni claims that Parrish threatened to have Dr. Deligdish arrested and removed from Parrish property. They also accuse Parrish of blocking access to electronic medical record systems and email communication.
• Refusal to Pay: Omni alleges that Parrish refused to pay amounts owed under various agreements, including performance bonuses and payments for services performed.

Legal Proceedings

Omni has filed the lawsuit in the Circuit Court for the Eighteenth Judicial Circuit in Brevard County, Florida, demanding a jury trial. They are seeking various remedies, including an injunction, compensatory damages, and reasonable attorney’s fees. The case is being represented by Charles Nicholas Dorman of WHATLEY KALLAS, LLP.

Conclusion

This lawsuit represents a significant and complex legal battle between two major healthcare entities in Brevard County. The allegations raised by Omni Healthcare, if proven, could have far-reaching implications for Parrish Medical Center and North Brevard Medical Support, Inc.

The case highlights the importance of whistleblower protections and raises questions about healthcare practices and compliance with legal standards. With Judge Paulk’s confirmation of whistleblower protection and Dr. Deligdish’s strong statement, the case is expected to be closely watched by legal and healthcare professionals in the region, and the outcome may influence future whistleblower cases in the healthcare industry.

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