MultiCare pays $3.7 million in federal lawsuit settlement related to former Deaconess neurosurgeon
MultiCare has agreed to pay $3.7 million to the federal government to settle a case over the conduct of former Deaconess neurosurgeon Jason Dreyer.
The case is the latest settlement related to Dreyer who has been investigated for performing medically unnecessary surgeries, harming patients and falsifying diagnoses at MultiCare Deaconess Hospital and Providence St. Mary’s Medical Center in Walla Walla.
In their lawsuit against MultiCare the federal government alleged the health care conglomerate “ignored and failed to take appropriate action on numerous red flags, warnings, and specific evidence of Dreyer’s fraud and endangerment of the public.”
“These allegations represent a profound breach of trust when patients undergo procedures they don’t need. Not only is their health and safety jeopardized, but valuable taxpayer dollars are wasted. This conduct is unacceptable, and today’s resolution sends a clear message that fraud, waste and abuse in our health care system won’t be tolerated,” said Department of Human Health and Services Assistant Special Agent Jeff McIntosh.
MultiCare claimed the settlement does not imply “any admission of liability or determination of wrongdoing.”
“MultiCare is confident in the quality of care provided to our patients and the clinical decision-making of our providers,” said MultiCare CEO Bill Robertson, in a statement. “MultiCare vigorously litigated the government’s allegations for nearly two years. The record that developed during that process speaks for itself. We are pleased to have resolved this matter and remain focused on delivering high-quality care to the communities we serve.”
Dreyer was hired by Deaconess in 2019 when Dreyer was already under investigation United States Attorney’s Office. MultiCare was informed by federal investigators of allegations Dreyer was performing medically unnecessary surgeries and falsifying diagnoses.
Despite this notification MultiCare continued allowing Dreyer see patients until March 2021 when the Washington Department of Health restricted Dreyer’s license. The license was later voluntarily surrendered in 2023. Two physician assistants working with Dreyer also raised patient safety concerns to MultiCare during that same time period.
When he was hired Dreyer had a performance-based package that promised him up to $1.75 million in additional compensation if he performed a certain volume of surgeries. That promised payout incentivized Dreyer to perform surgeries that were not needed, said Pete Serrano, special attorney in the Eastern District of Washington.
“There are pictures of screws in people’s necks or their backs. You’re talking about, long lasting injuries that are medically unnecessary,” Serrano said.
“The alleged violations by MultiCare show a wanton disregard for ethics and the medical principle to do no harm,” Washington Attorney General Nick Brown said in a statement. “This settlement is a win for patient safety and protecting public dollars to get people necessary healthcare.”
In April 2022, Providence Medical Group agreed to pay $22.7 million to settle a similar lawsuit related to Dreyer’s conduct at St. Mary’s Medical Center. A year later in April 2023, Dreyer agreed to pay nearly $1.2 million to settle the complaint against him while not admitting guilt, according to the Tri-City Herald. A civil class action lawsuit against Dreyer is ongoing.