Roseburg’s Architrave Health, Mercy Medical Center and Dr. Robert Dannenhoffer have settled their lawsuit “on amicable terms to all parties,” -- while disclosing little of what those terms might be.
With the settlement, Architrave and Dannenhoffer will donate a total of $200,000 to the YMCA of Douglas County and the Douglas Public Health Network, where Dannenhoffer is now the executive director. He also serves as the county public health officer.
The lawsuit, launched in January 2016, stemmed from Dannenhoffer’s termination a year before as the CEO of Architrave. He alleged he was fired as retaliation for informing the federal government about allegations of Medicare fraud for doctors employed by the same umbrella of companies as Architrave.
The lawsuit had been filed in the federal district court in Eugene.
A review of a subsidiary, the Umpqua Medical Group, showed doctors were receiving kickbacks, including extra payments when they prescribed certain drugs or made referrals to some health services for Medicare patients, in violation of federal law. According to Dannenhoffer, Medicare had been improperly billed for $10 million over four years.
The Medicare investigation remains ongoing.
“We are pleased that this resolution will allow Architrave, Mercy, and Dr. Dannenhoffer to continue to provide high-quality health care to the residents of Douglas County,” the parties stated jointly.
Architrave, a company owned jointly by Mercy Medical Center and the Douglas County Independent Physicians Association, operates the coordinated care organization in Roseburg to manage Medicaid services to most of Douglas County.
