Lawsuit: Charlotte doctors who uncovered ER fraud seek damages

CHARLOTTE, N.C. — Two Charlotte doctors who helped uncover emergency room fraud now claim they were fired for trying to protect patients.

[PDF: Wrongful termination complaint]

In 2010, doctors Thomas L. Mason and Steven G. Folstad filed a lawsuit saying EmCare, an emergency department staffing agency, admitted patients to hospitals and ordered tests that weren't needed.

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The lawsuit stated from 2008 to 2012, the company got bonuses for admitting Medicare patients to certain hospitals, including Lake Norman Regional Medical Center and Davis Regional Medical Center.

Now, the doctors claim the company that owns the hospitals fired them after they exposed the scheme to the government and they believe they deserve millions in back pay.

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“Our efforts should embolden other emergency medicine practitioners to stand up against corporate pressure to put profits before patient care. Perhaps others will not have to resort to taking the extraordinary measures that our group was forced to do to stop this type of illegal behavior,” said Folstad.

Officials said the ownership group -- now called Community Health Systems -- paid about $80 million in a settlement for emergency room fraud allegations last year and Emcare paid a $33 million settlement in 2017.

Cox Media Group