Tacoma, Wash.-based MultiCare Health System is settling allegations that it endangered patients and fraudulently billed federal healthcare programs for unnecessary spine surgeries.
The settlement stems from spine surgeries performed by Jason Dreyer, DO, at MultiCare Deaconess Hospital and MultiCare Rockwood Clinic between 2019 and 2021, the U.S. Attorney’s Office for the Eastern District of Washington said Feb. 3. Dr. Dreyer already reached a more than $1.1 million individual settlement in 2023 to resolve fraud allegations, along with a nine-year exclusion from Medicare.
In its settlement, MultiCare made factual admissions over its conduct and is paying a total of $3.728 million, $1.6 million of that being restitution. Based on admissions and court records, MultiCare hired, credentialed and supervised Dr. Dreyer while ignoring and failing to address multiple red flags including evidence of fraud and endangerment.
Court records revealed that within months of starting at MultiCare, Dr. Dreyer had complaints over patient safety concerns. However the health system still allowed him to perform a high volume of medically unnecessary complex spine surgeries.
In a statement shared with Becker’s, MultiCare said the decision to settle allows the system to “avoid the cost and uncertainty of continued litigation and focus its resources on its mission of providing high-quality care to patients.” The settlement does not include any admission of liability or determination of wrongdoing.
“MultiCare is confident in the quality of care provided to our patients and the clinical decision-making of our providers,” MultiCare CEO Bill Robertson said in a statement. “MultiCare vigorously litigated the government’s allegations for nearly two years. The record that developed during that process speaks for itself. We are pleased to have resolved this matter and remain focused on delivering high-quality care to the communities we serve.”
