$34.4 million judgment hits Oklahoma officials
Posted: Saturday, April 26, 2003
OKLAHOMA CITY (AP) -- A federal jury has awarded a $34.4 million judgment against three state health care officials for underpaying operators of mental-health facilities who had criticized their agency.
The jury Thursday agreed with six health care providers who alleged Oklahoma Health Care Authority Director Mike Fogarty punished them for opposing his efforts in 1998 to change some of the authority's rules. The providers also had lobbied for more funding.
"A blow has been struck for the little guy," plaintiffs' attorney Steven E. Holden said at a news conference Friday.
The judgment was levied against Fogarty, Terrie Fritz, OHCA's director of behavioral services, and Dana Brown, a former lobbyist for the authority.
Most of the award was compensation for services for which the plaintiffs said they were underpaid or not paid at all, but the jury also awarded $1.3 million in punitive damages.
OCHA officials denied the accusations during a six-day trial, and the authority has filed a motion to overturn the verdict.
OHCA spokesman Nico Gomez said it was premature to discuss an appeal because the judge could alter the jury award in his final order.
A message left at Fogarty's home late Friday was not immediately returned. No phone numbers were listed for Fritz or Brown.
Holden said the plaintiffs operated small private mental health facilities, mostly in eastern Oklahoma, under the Medicaid program. Five facilities operated by four of the plaintiffs have closed, he added.
The lawsuit alleged a conspiracy to delay or deny providers compensation while causing them needless paperwork.
Plaintiffs' attorney Stephen J. Capron said records showed plaintiffs were getting paid half as much as other providers for the same kind of work.
"We were being singled out because of our public criticism of the Health Care Authority," said plaintiff Nancy Graves-Thrift, who operates a mental health facility in McAlester.
The mental health care providers also accused OCHA officials of refusing them access to public meetings and public records, and said Fogarty threatened to have a relative of one provider investigated because of his lobbying activities.
Holden said Fogarty, Fritz and Brown and a private insurance company would be responsible for paying the judgment, not state taxpayers. Under the standard liability policies purchased by state agencies, officials are protected from lawsuit damages if they were working within the scope of their employment.
Officials of the OHCA and the Department of Central Services declined to comment on the state's liability in the verdict.
The jury Thursday agreed with six health care providers who alleged Oklahoma Health Care Authority Director Mike Fogarty punished them for opposing his efforts in 1998 to change some of the authority's rules. The providers also had lobbied for more funding.
"A blow has been struck for the little guy," plaintiffs' attorney Steven E. Holden said at a news conference Friday.
The judgment was levied against Fogarty, Terrie Fritz, OHCA's director of behavioral services, and Dana Brown, a former lobbyist for the authority.
Most of the award was compensation for services for which the plaintiffs said they were underpaid or not paid at all, but the jury also awarded $1.3 million in punitive damages.
OCHA officials denied the accusations during a six-day trial, and the authority has filed a motion to overturn the verdict.
OHCA spokesman Nico Gomez said it was premature to discuss an appeal because the judge could alter the jury award in his final order.
A message left at Fogarty's home late Friday was not immediately returned. No phone numbers were listed for Fritz or Brown.
Holden said the plaintiffs operated small private mental health facilities, mostly in eastern Oklahoma, under the Medicaid program. Five facilities operated by four of the plaintiffs have closed, he added.
The lawsuit alleged a conspiracy to delay or deny providers compensation while causing them needless paperwork.
Plaintiffs' attorney Stephen J. Capron said records showed plaintiffs were getting paid half as much as other providers for the same kind of work.
"We were being singled out because of our public criticism of the Health Care Authority," said plaintiff Nancy Graves-Thrift, who operates a mental health facility in McAlester.
The mental health care providers also accused OCHA officials of refusing them access to public meetings and public records, and said Fogarty threatened to have a relative of one provider investigated because of his lobbying activities.
Holden said Fogarty, Fritz and Brown and a private insurance company would be responsible for paying the judgment, not state taxpayers. Under the standard liability policies purchased by state agencies, officials are protected from lawsuit damages if they were working within the scope of their employment.
Officials of the OHCA and the Department of Central Services declined to comment on the state's liability in the verdict.
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