14 Nevada Cardiologists Sue Renown for Fraud, Conspiracy in Compensation Agreement

Fourteen cardiologists have sued their current employer, Renown, claiming the Reno, Nev.-based healthcare network "fraudulently" induced them to sign contracts and used a "bait and switch" scheme to buy their former practice, according to a Reno Gazette-Journal report.

The physicians are from the former Reno-based Sierra Nevada Cardiology Associates, which Renown acquired in late 2010. They first filed suit against Renown in August for misrepresentation, according to the report, but have filed more documents in recent weeks accusing Renown and other executives of conspiracy and fraud.

The physicians claim a Renown executive, Phil Schwebber, stepped down from Renown and took post as the executive director of SNCA in 2009. Mr. Schwebber allegedly "played both sides of the fence" by telling Renown about physicians' private conversations about the sale. Mr. Schwebber is now employed by Renown as a business development administrator, according to the report.

The physicians also claim Mr. Schwebber assisted Renown in a "bait and switch" scheme in compensation arrangements. Renown allegedly agreed to pay the cardiologists $450,000 per year plus an additional $157,000 in incentives subject to performance measures. When the physicians signed their contract, however, they claim the compensation language wasn't attached to the paperwork and Mr. Schwebber "refused" to give them a copy of the agreement, according to the report.

Renown CEO Jim Miller responded to the allegations in an email to the Reno Gazette-Journal. Mr. Miller said, "These are like claims that are made during political campaigns. They are inflammatory, they have no basis in fact and people need to take them for what they are: an overly aggressive litigation tactic intended for the media and not the court," according to the report.

Physicians have said that if they leave Renown, they will have to move elsewhere for employment opportunities. One of the cardiologists suing Renown said he and his partners are "absolutely scared to death" about their job security, according to the report.

Related Articles on Renown:

FTC, Nevada AG Examine Renown Health's Partnerships With Cardiovascular Groups
Nevada's Renown Regional Medical Center Names New CEO
Las Vegas Public Hospital May be Privatized


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