Sun Sentinel Broward Edition

Ex-exec says he was fired for informing

Ex-worker claims he shared concerns at Broward Health

- By David Fleshler and Megan O’Matz Staff writers

A former employee of the Broward Health public hospital system says hewas fired for reporting illegal activities he witnessed on the job.

The hospital system plans to hire a special counsel to investigat­e his claims.

A former compliance director at Broward Health claims he was fired after only two months on the job for informing superiors of illegal activities taking place at the public hospital system, which is already facing state and federal investigat­ions.

The hospital system plans to hire a special counsel to investigat­e his claims.

Mike Pelaez, former chief privacy officer of Jackson Health System in Miami, started working at Broward Health Oct. 19 and soonbecame­aware of “various illegal activities being conducted by Broward Health through its employees,” according to a Feb. 12 letter from Pelaez’s lawyer, Peter F. Valori, to BrowardHea­lth.

Some of the claims involved the health system’s alleged failure to comply with a $69.5 million settlement agreement with the federal government over improper contracts with doctors, according to the letter. Under the contract system, Broward Health maintained a secret compensati­on system that rewarded physicians who referred patients to its imaging, physical therapy and other services and penalized them for accepting charitywor­k.

The settlement agreement required Broward Health to institute new standards and procedures for ensuring that physicians and other employees comply with the law. The letter gavenodeta­ilsonthe claims

it asserted were taking place but said, “These flagrant and continuous violations pose a substantia­l danger to public health and are a direct result of the serious mismanagem­ent and malfeasanc­e by Broward Health’s upper management and its employees.”

Pelaez contends he reported suspected illegal activities to several Broward Health officials, including General Counsel Lynn Barrett and chief executive officerDr. Nabil El Sanadi.

El Sanadi “was supportive and commended Mr. Pelaez for his ongoing efforts to investigat­e and report the illegal activities to him and agreed to protect him from retaliatio­n fromthosew­howere engaging in the above wrongful conduct,” the letter stated. But, it added, Broward Health, “possibly against the wishes of the CEO, and in retaliatio­n for his actions, terminated his employment without notice.”

Pelaez was fired on Dec. 18. The letter invokes the Florida Whistleblo­wer Act and seeks reinstatem­ent and at least $307,830.

DavidDi Pietro, chairman of the board of Broward Health, said he discussed the letter Tuesday with the organizati­on’s acting chief executive officer, Kevin Fusco, general counsel Lynn Barrett and ethics and security chief Carlos A. Perez-Irizarry. They said a special counsel would be appointed to investigat­e the allegation­s.

Broward Health issued a statement that said,“We take these matters very seriously and it will be reviewed.”

Pelaez could not be reached for comment. Valori could not be reached, despite calls to his office and cellphone.

The letter comes during a tumultuous time for Broward Health, whichruns hospitalsa­nd clinics that serve the northern 2/3 of Broward County.

The system, governed by a seven-member volunteer board appointed by Gov. Rick Scott, experience­d the recent suicide of El Sanadi. It is trying to work through the consequenc­es of its settlement with the federal government and now faces separate state and federal investigat­ions into its activities.

An outside investigat­or hired last year by El Sanadi, Wayne Black, now says the district has obstructed an FBI investigat­ion into its activities.

The board voted last week to try to discuss the investigat­ions in a private meeting, if they can obtain a legal opinion that such a meeting would be permissibl­e under Florida’s strict open-meetings law. The Sun-Sentinel’s lawyers have filed an objection.

Broward Health issued a statement Monday saying it would request an opinion from Florida Attorney General Pam Bondi and would comply with the open-meetings law.

“Our interest in exploring this option is not an attempt to conduct business outside of the public eye,” the statement said. “We are committed to maximizing transparen­cy without underminin­g potential investigat­ions.”

The statement also said: “We are as eager to seek the truth as anyone else.”

The investigat­ions may be discussed in a different forumWedne­sday, when the Broward Health audit committee meets.

The committee has put on its agenda discussion­s of the investigat­ion by the Florida inspector general and the allegation­s by Black.

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