Class Action Lawsuit Filed on Heels of Settlement for Unnecessary Spine Surgeries

Sarasota, FL (WorkersCompensation.com) – In April, the Eastern District of Washington Department of Justice announced a settlement of $22.7 million to resolve allegations of fraudulent billing of spine surgeries by Providence Health & Services. That settlement agreement has now spurred a class action lawsuit filed earlier last month in King County. 

With headquarters in Renton, Washington, Providence is a Catholic non-profit healthcare system with 52 hospitals and 950 clinics across 7 states. According to their website, the group employs around 25K physicians, and has around 28.1 million total patient encounters a year. 

Part of what initiated the complaint filed by the former Medical Director of neurosurgery at its St. Mary’s location was patient safety concerns voiced by staff, failure to sanction offending providers, and payment based on productivity. Although not named in the announcement, it was mentioned that the highest producing spine surgeon had received payouts totaling $2.5 million and $2.9 million per year between 2014 and 2017. 

Part of the settlement agreement requirements included that Providence admit that medical personnel relayed concerns over patient safety, that there were excessive levels of surgeries resulting in poor outcomes and increased complications, and that surgeries were performed without proper documentation or proper course of treatment. 

According to a recent Becker’s Spine report, a class action lawsuit was filed on May 13th on the heels of Providence’s settlement with Dr. Daniel Elskens and Dr. Jason Dreyer named as co-defendants. The lawsuit alleges that spinal fusions were done unnecessarily, resulting in permanent damage. At least four local residents are named as plaintiffs, but more are expected to join according to attorney Bill Gilbert.

One of the plaintiffs includes a 59-year-old woman treated by Dr. Elskens for lower back pain. The suit alleges that neck surgery was recommended, and the procedure done in 2016 resulted in damaged vocal cords. An additional surgery was then done by Dr. Dreyer in 2017 which resulted in even more damage. 

Another plaintiff includes a 60-year-old woman operated on by Dreyer in 2015 resulting in a series of spine surgeries, and alleged resulting permanent damage. The lawsuit also contends that conservative non-surgical treatments were not given as options prior to surgery. 

Both Elskens and Dreyer were allowed to resign from Providence without sanctions or reporting. As result, they were eligible to be hired by another facility. 

According to an InsuranceNewsNet report, Elskens is working in a neurosurgery clinic at Firelands Regional Medical Center. 

Dreyer went to work at MultiCare Rockwood Clinic in Spokane, but was fired upon the Washington state Department of Health placing him on restricted license. Dreyer denied allegations brought forth by the Department Of Health, but after meeting the board contended that Dreyer had shown a “pattern of misrepresenting and overstating the need for surgery on patients”. Dreyer’s license as an osteopathic surgeon has been restricted from performing spine surgery unless each case is reviewed by two separate board-certified neurosurgeons, one of which must work elsewhere and have no financial ties. 

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