Whistleblower Settles Retaliation Claims with SF Hospital for $750K

A former hospice physician recently secured a $750,000 settlement from the City of San Francisco after he filed complaints alleging that his layoff was the result of retaliation for whistleblower complaints that San Francisco’s Laguna Honda Hospital and Rehabilitation Center (“Laguna Honda Hospital”) had misused patient funds and knowingly entered into a conflict of interest.

Dr. Derek Kerr, a hospice physician for over 20 years at Laguna Honda Hospital, filed complaints against the hospital in late 2010, alleging that it misused patient gift funds and knowingly entered into a conflict of interest when it established a relationship with a non-profit that had connections to management at the hospital.  The day after he filed the complaints, Kerr received a layoff notice.

Kerr reported the layoff to the San Francisco Ethics Commission as whistleblower retaliation, which is prohibited under California Government Code section 53298, California Health and Safety Code section 1432, and California Labor Code section 1102.5.  He later filed a complaint in the San Francisco County Superior Court and eventually negotiated a $750,000 settlement with the city, and an agreement that a plaque be installed at the hospital commemorating his work there.  He will also be lauded by the very officials who were allegedly responsible for his layoff.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who have been subject to retaliation for taking action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.