Orthopedic surgeon-related lawsuits lead to Wyoming hospital’s bankruptcy plans: 5 key notes

Practice Management

Powell (Wyo.) Valley Healthcare plans to file for bankruptcy after 20 patients filed lawsuits related to an orthopedic surgeon who formerly performed cases there, according to a Billings Gazette report.

Here are five key notes:

 

1. Powell Valley Healthcare employed orthopedic surgeon Jeffrey Hansen, MD, from 2006 to 2014. Twenty former patients filed malpractice lawsuits against him for services rendered in 2013 and earlier. The hospital suspended Dr. Hansen, and he later resigned.

 

2. The lawsuits combined seek more than $70 million in damages. In court filings, the hospital and Dr. Hansen denied any wrongdoing or negligence.

 

3. Two other patients filing malpractice suits against Dr. Hansen and the hospital settled out of court. According to the board, the litigation has strained hospital personnel time and finances.

 

4. Powell Valley Healthcare’s board of directors approved filing for Chapter 11 bankruptcy earlier this week. The hospital would remain in control of day-to-day operations and isn’t expecting staff reductions or layoffs at this time.

 

5. Dr. Hansen still has his medical license in Wyoming.

 

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