Hospital Settles Whistle Blowing Suit

One industry which was unshaken by the global financial crisis is the health care industry.

Regardless of the economic conditions, people go to the hospitals or medical providers to be treated from various illnesses.

But some hospitals have gone beyond the dictates of ethics and morality by violating the Medicare’s anti-kick back rules.

The Tulare Regional Medical Center and its parent, the Tulare District Healthcare System agreed to settle a whistle blowing suit for $2.4 million. The complaint alleged that both provided doctors with office rent and land sale considerably below fair-market value. The hospital and the health care system were also alleged to forgive debts in lieu of patient referrals to the hospital.

The allegations were raised in the suit by hospital district's former chief financial officer, Maria Lucy Reimche. As a whistle-blower, she will be given $500,000 as part of the settlement.

The settlement was made without any admission of wrongdoing. Patric Hooper, the hospital’s counsel, claimed that the allegations happened under the previous management. As the hospital is now under new management, Hooper said that any arrangements with the doctors would now comply with the federal law.

Whistle blowing is encouraged to expose any wrongdoing or to make public any concealed misconduct on the part of an organization.

Should you be involved in a whistle blowing case and your employer retaliated against you, you may consult an employment attorney to defend your cause.

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How Discretionary is Discretionary bonus

Now that the ‘-ber’ months is coming, we usually think of bonus, among other things. And when we talk of bonus; the issue of whether the same is discretionary or non-discretionary will come into picture.

Determining whether your bonus is discretionary or not, is important. The legal implication with each kind varies.

Discretionary bonus, as a rule, can be withheld from the employee provided it is done in good faith. Non-discretionary bonus, again as a general rule, cannot be withheld.

Issues branch out when we speak of discretionary bonus. Questions arise like have the employers all the power to withdraw discretionary bonus because in the first place, it is that – discretionary?

Can the employer exercise discretion in not paying discretionary bonus?

In both instances, the employer cannot. As mentioned, the exercise of discretion to withhold the bonus must be made in good faith. It must not be withdrawn from the employee capriciously or irrationally.

The discretion to mean at employer’s will and want is not absolute after all. An employer must always be fair and just in his dealings with his employees. His rights, though clearly his, must be exercised in good faith and in reasonable grounds.

Lack or absence of good faith and reasonable ground would constitute a cause of action against the employer by the employee. For those who have been unfairly treated and denied discretionary bonus, it is imperative to speak with a labor or employment attorney right away and stand for your right.

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