Tonya Mallory is back in the news and this time she is teaming up with the former CEO of Bon Secours Virginia to launch a new healthcare company. Mallory was formerly CEO of Health Diagnostic Laboratory of Richmond, Virginia. This is the lab company that settled a major whistleblower case with the federal government, without admitting guilt. In court filings, federal prosecutors claim that HDL was paid $500 million by the Medicare and Tricare health programs between 2010 and 2014 for false claims. Now Mallory is a partner with Peter Bernard, formerly of Bon Secours Virgina. The two ex-CEOs have founded Creo Wellness, Inc., a company that news reports describe as offering blood testing and health coaching services designed to reduce the long-term healthcare costs of employers.
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Mallory, along with other individuals associated with Health Diagnostics Laboratory and BlueWave Health Consultants, was sued by federal prosecutors in a case filed in August 2015. In court papers, federal prosecutors say the defendants “knowingly and willfully offered and/or paid kickbacks, primarily in the form of $80 million dollars in improper process and handling fees to induce physicians to refer blood samples,” to specialty laboratories for large panels of tests. Federal prosecutors are seeking to recover $80 million from the defendants.
- Paul R. Labbe retired last week from CompuNet Clinical Laboratories of Moraine, Ohio. He was Interim Chief Operating Officer. It was 1980 when Labbe started at Miami Valley Hospital, an owner of CompuNet. He joined CompuNet in 1986, at its formation, and completed 30 years of service there last week.
- James A. Santucci was named the new Chief Operating Officer of Desert Regional Medical Center in Palm Springs, California. He has held administrative and executive positions at Swedish Medical Center, Allina Medical Laboratories, Laboratory Corporation of America, Dynacare Laboratories, Scripps Health, and Quest Diagnostics Incorporated.
- In January, Ken Botta retired as President of the Western Division for Sonic Healthcare USA. During his career, he held positions with Cleveland HeartLab, SED Laboratories, AmeriPath, Laboratory Corporation of America, Unilab, and National Health Laboratories.
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…the financial struggles of hospital trusts in the United Kingdom. Only seven of the 138 hospital trusts are profitable this year and one reason is that demand for healthcare is growing faster than budgets can be increased by the National Health Service.
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That’s all the insider intelligence for this report. Look for the next briefing on Monday, May 2, 2016.