In order to end litigation surrounding a whistleblower-retaliation case brought against the University of California – Los Angeles’ orthopedic surgery department by its former chairman, the UCLA Regents have agreed to a payment of 10 million dollars to compensate the former chairman for his role in exposing industry payments to UCLA doctors that may have jeopardized patient health. The case arose out of consulting payments made to doctors at the David Geffen School of Medicine, as well as other financial connections between large medical companies and UCLA.
Dr. Robert Pedowitz asserted in legal filings that he reported conflicts of interest that existed when medical industry representatives made payments to medical professionals that might lead to patient care that was not in the best interest of the patient. Dr. Pedowitz alleged that UCLA, the Regents of the University of California, and fellow surgeons, as well as senior officials in the university system, failed to take appropriate actions when informed about these problems and subsequently retaliated against Dr. Pedowitz by demoting him, excluding him from certain grant applications, and taking other actions that were adverse to his professional interests.
Although UCLA denies any wrongdoing and asserts that patient care was not compromised and that there were no financial improprieties or retaliation, the Regents agreed to the settlement in order to avoid any further litigation.
The allegations of wrongdoing relate to the influence that a medical device manufacturer might have on a surgeon who had a financial connection to the medical company. In addition, there was the possibility of compromised research when the doctor conducting the study was receiving money from a medical company that was invested in a particular outcome of the research. Dr. Pedowitz reported that the university also would benefit financially from certain research results if it led to the commercially successful pharmaceuticals or medical devices.
This whistleblower-retaliation case comes at an important time because the Physician Payments Sunshine Act will go into effect in the fall of 2014. This component of the new healthcare law requires disclosure of financial connections between doctors and healthcare companies. For many patients, a doctor who was receiving a quarter million dollars per year in consulting fees from a medical device company who then strongly recommends a treatment based on a product or drug manufactured by that company might not be trusted. The issue of informed consent is critical for proper patient care and it is difficult to separate large financial incentives with neutral treatment recommendations.
As part of the whistleblower complaint that was initially filed in 2011, Dr. Pedowitz agreed to step down from his position in the orthopedic surgery department, effective immediately. He had been recruited into the position of chairman in 2009, but was demoted in 2010, after he had raised concerns about the improper financial practices. One of the protections of bringing a whistleblower complaint is that a complainant’s job is protected. However, settlements often involve a separation agreement because it is difficult for parties who were involved in contentious and protracted litigation to be able to resume a productive work relationship. Many whistleblower claims that are resolved prior to this point may result in the complainant resuming his job duties, particularly if the whistleblower case led to widespread changes in policy.
When an employee has done the right thing and reported serious problems only to find himself being retaliated against by his employer, it is important to get the right legal help as soon as possible. The knowledgeable and hardworking Mississippi Qui Tam/Whistleblower Attorneys at Barrett Law PLLC are committed to getting the best results possible for our clients. Please call us at (800) 707-9577 to schedule a confidential and free consultation about the wrongdoing that you have experienced.