Lahey Lawsuit: Govt Seeks Start Of Discovery
Lawyers representing the Bermuda Government in its lawsuit against Lahey Hospital and Medical Center are asking a U.S federal judge to allow them to begin demanding documents and deposing witnesses.
The was reported by the Boston Globe, which said, “In a court filing on Friday, Bermuda’s attorneys said the case should proceed to discovery, a process that is likely to take months.”
“Lahey, in court documents last week, acknowledged that it paid Brown $125,000 annually and sent another $200,000 per year to his medical clinic. Lahey described the arrangements as routine, and submitted into court the contracts that it signed with Brown and his clinic.
“The Bermuda government’s lawyers at the Boston office of Cooley LLP said Lahey’s court submissions admit that the hospital secretly conspired with Brown. Lahey’s contracts with Brown and his clinic ‘in and of themselves, go a long way towards proving Bermuda’s central allegations,’ the lawyers said in a court filing Friday,” according to the Globe.
The Boston Business Journal reports that Lahey is contesting the allegations, and filed a motion to dismiss the lawsuit which contained copies of the agreements Lahey had signed with Dr Brown, which Lahey called a “routine business arrangement.”
Lawyers representing Bermuda pointed to those same documents as proof that the hospital allegedly violated the Foreign Corrupt Practices Act, the Journal reports, adding that the filing stated, “Lahey is free to hire consultants to help it develop business in Bermuda, but not if those consultants are foreign government officials retained to secure an improper advantage over its competitors.”
In response, a Lahey spokesperson told Bernews, “Lahey Hospital & Medical Center [LHMC] has provided high-quality care to the people of Bermuda for 25 years. LHMC was the first health system to bring highly-trained specialists to Bermuda to provide care where it is more convenient and lower cost.
“Over the years, LHMC doctors have improved the health of thousands of Bermuda residents, created programs to address significant public health issues and helped educate and recruit physicians to the island to increase access for needed services.
“LHMC’s professional relationships, consulting agreements and business practices are fully compliant with all applicable laws and regulations and beyond reproach. It is disappointing to see a commitment of 25 years dramatically misrepresented for what appears to be political reasons.
“We are committed to defending this lawsuit through every step of the process and we will continue to provide the care and support our patients in Bermuda need and deserve.”
In February 2017, the Bermuda Government filed a lawsuit in the federal court of Massachusetts alleging that Lahey conspired with former Premier Dr Ewart Brown, with payments to Dr Brown “disguised as consulting fees,” in return for which Dr Brown “ensured that Lahey received preferential treatment when bidding on healthcare contracts issued by the Bermudian Government.”
Dr Brown has already denied the allegations, calling them a “litany of lies,” while Attorney General Trevor Moniz has said “the Government believes it has substantial claims against Lahey”
