Dannenhoffer Ousted, Stark Self-Disclosure Report Filed

The CEO of Architrave Health, the coordinated care organization in Douglas County, lost his job Tuesday, while a federal probe on physician self-referrals could be underway.

Dr. Robert Dannehoffer lost his job Tuesday as CEO of Architrave Health after helping create the coordinated care organization in 2013, bringing together the physician community and the independent hospital – Douglas County IPA and Mercy Medical Center, which are equal partners.

No reason was given for his dismissal, according to Kelly Morgan, CEO of the hospital who chairs the Architrave board. But Morgan did tell The Lund Report that Architrave has filed a Stark self-disclosure report with the Centers for Medicare and Medicaid Services. That report deals with one of Architrave’s subsidiaries, which Morgan refused to disclose.

The Stark Amendment prevents physicians from doing self-referrals and receiving kickbacks and rebates from medical facilities and is punishable by civil penalties up to $100,000.

Morgan flatly denied such a potential violation had anything to do with Dannehoffer’s firing by the board, which unanimously decided to release him.

“Under attorney-client privilege I’m not at liberty to share the details of that self-disclosure report,” he said. “But it had absolutely nothing to do with Bob’s dismissal.”

Dannenhoffer was dismissed because of a personnel matter, maintained Morgan who refused to share any details.

When reached for comment, Dannenhoffer sounded upbeat, saying he was doing great despite being surprised by the board's decision to fire him, and wished Architrave well. He also refused to speculate on his dismissal.

"Actually I'm profoundly concerned about the murder of two babies in Douglas County this week and the treatment of children.," he told The Lund Report.

Ruth Rogers Bauman, CEO of ATRIO Health Plans, which is partially owned by Architrave Health, didn't hesitate to share her admiration of Dannenhoffer, and told The Lund Report:

“I worked closely with Bob for a long number of years, and I was sad to see him go. He’s been a force in healthcare for many years and made great contributions.”

Earlier, The Lund Report heard that Mercy Medical Center was being investigated for an anti-trust violation, but Morgan denied that was the case, contending it was just a rumor.

Gary McCormack, a former hospital executive, has stepped in as interim CEO, while a national search will get underway to select Dannenhoffer’s replacement. In a statement released by Morgan yesterday:

“We want to thank Dr. Dannenhoffer for all of his hard work and dedication. He has played an instrumental role in the founding of Architrave Health. His many contributions have built a strong foundation upon which Architrave Health is well-positioned to grow.

“A nationwide search for a permanent, full-time CEO will be launched in the coming months. No other staffing changes among Architrave Health's personnel are anticipated at this time.

“Architrave Health has, since its founding, built strong partnerships throughout Douglas County that will continue to deliver results in connecting residents with quality, affordable health care. We are excited to continue that progress forward through the dedication and innovation which makes Architrave Health a valuable asset to the community.”

Dannenhoffer, 59, is a close colleague of former Governor John Kitzhaber who spent 14 years at Mercy Medical Center as an emergency room physician before entering politics. And, he was appointed to the selection committee that chose the new administrator of the Oregon Health Authority, Lynne Saxton.

A pediatrician, Dannenhoffer is past president of the Oregon Medical Association, and was named a Smoke Free Oregon hero in 2012.

Diane can be reached at [email protected]

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