Lobbyist power key in suit
Former Broward Health chief cites influence on board
The former chairman of Broward Health claims in a lawsuit that a lobbyist close to Gov. Rick Scott controls appointments to Broward Health’s board and used that power to help a client win a highly questionable contract.
The lawsuit, filed 17 months ago but sealed until Friday, says Fort Lauderdale lobbyist William Rubin told thenBroward Health board member David Di Pietro that he “was controlling” all appointments to the board, whose members are chosen by the governor to run the five-hospital, taxpayer-supported system.
After Di Pietro complained to Scott about Rubin’s influence, the governor “acted upset” but ignored Di Pietro’s concerns, the lawsuit states.
The conversation got back to Rubin, however, who said Di Pietro “made a mistake” by contacting the governor about “my appointments” but offered to “move forward as a team.”
Rubin did not respond to a request for comment Monday.
The lawsuit, first reported by the Florida Bulldog website, was filed by Di Pietro in federal court against 21st Century Oncology, a Fort Myers company that provides cancer radiation services in the United States and Latin America.
The company declined comment, with a spokeswoman saying the company never discusses pending litigation.
In 2011, the company hired Rubin to approach Frank Nask, then in his last years as chief executive officer of Broward
Health, legally known as the North Broward Hospital District. The lawsuit states that Rubin was hired because he was a close friend of the governor’s and could guarantee to Nask that future board appointees would “protect Nask’s continuing employment, salary, and pension as CEO.”
Nask agreed and took several highly questionable steps to force the contract through, the lawsuit states, pushing through disguised payments of “hush money” to the current holder of the contract and concealing from the board the negative financial impact of the new contract.
“Under the deal with 21st Century Oncology, since September of 2011, Broward Health has lost over $30 million,” the lawsuit states.
Nask could not be reached for comment Monday.
The lawsuit was filed under the federal False Claims Act, which allows a private citizen to bring suit on behalf of the federal government over the misuse of taxpayer money, in this case federal health insurance funds. Under the law, Di Pietro could profit greatly if there’s a courtroom victory or substantial settlement.
Di Pietro said he has been told by his lawyer not to comment. The lawsuit doesn’t say why Di Pietro waited until he was off the board to raise the issue of Rubin’s influence, although it says the board hadn’t been informed of the contract’s disastrous financial impact when it voted to award it.
The federal government has the option to join in such suit and chose not to in this case.
“We are pleased the government has investigated this case and determined it would decline to pursue it,” said a statement from EvClay Public Relations, Broward Health’s public relations firm. “Broward Health has fully cooperated with the government in their investigation.”
The governor’s office released a statement distancing the governor from the matter but not addressing whether he or Rubin intervened on behalf of the company.
“The Governor’s office nor the Governor are named as a party in this lawsuit, which was filed against a private company four days after Mr. Di Pietro resigned from the board in April 2016,” the governor’s office said. “Governor Scott has acted to make sure that the North Broward Hospital District is accountable to the taxpayers they serve and will continue to do just that.”
With Nask retiring, Rubin pressed for the appointment of two new board members, Maureen Canada and Sheela Van Hoose, who knew and supported Dr. Nabil El Sanadi, who would become CEO.
“Thc message to El Sanadi was clear: Rubin orchestrated his appointment as Broward Health CEO and Rubin required him to protect the 21St Century contract in exchange,” the lawsuit states.
El Sanadi committed suicide in early 2016. In the turmoil following his death, the Florida Office of Chief Inspector General, which is part of the governor’s office, started an investigation
of contracts awarded by the Broward Health board. But the period covered by the investigation started after the award of the 21st Century Oncology contract.
Di Pietro was later suspended by the governor on the advice of his chief inspector general, in disputes over the handling of the state investigation, after he became increasingly vocal in his criticism of Broward Health’s interim CEO and general counsel. He successfully sued to get his seat back, and then resigned, complaining of “political interference” with the board’s work.
At Broward Health’s monthly board meeting Monday, Chairman Rocky Rodriguez said in an interview that he knew Rubin but never received any requests from him on Broward Health business. Board member Chris Ure said he’d met him but never talked about Broward Health with him.
In an unrelated matter, Broward Health has agreed to pay $1.5 million to the state of Florida to settle the state portion of a federal case over improper payments to physicians. The federal case cost Broward Health about $70 million and has led to continuing federal oversight of its operations.
The state attorney general’s office had originally sought more than $5.3 million, so the lesser amount was a favorable result, General Counsel Lynn Barrett told the board, at its monthly meeting Monday.
“We think this is a very, very good thing,” she said.