Healthcare Systems of America-Florida and its founder and former CEO, Mike Sarian, PhD, have agreed to settle two Miami-Dade County, Fla., lawsuits that accused him of financial misconduct, according to court documents obtained by Becker’s.
HSA Florida told the Miami Herald on Nov. 11 that “the dismissal of the [Miami-Dade] lawsuit is in exchange for Dr. Sarian giving up all rights of ownership and control of the HSA facilities. Our hospitals are safe, fully operational, and we have an unwavering commitment to providing high-quality healthcare every day.”
The parties filed a joint stipulation, which was reviewed by Becker’s, on Oct. 29 in the Circuit Court of the 11th Judicial Circuit dismissing all claims with prejudice, meaning they cannot be refiled. The parties had reached an agreement by Aug. 3, when they asked the court to pause the cases, while the “settlement conditions” were consummated.
HSA-Florida’s facilities include Palmetto General Hospital in Hialeah, Coral Gables Hospital, Florida Medical Center in Fort Lauderdale, North Shore Medical Center in Miami and Hialeah Hospital.
The legal battle spanned courts in Nevada, Florida and California, and involved governance disputes at multiple healthcare organizations, including American Healthcare Systems, NOR Healthcare Systems and Glendale, Calif.-based Healthcare Systems of America.
HSA’s board removed Dr. Sarian, who founded multiple hospital companies across several states, March 3 as board chair and CEO of HSA America-Florida. HSA Florida Physician Group and the five HSA Florida hospitals then sued him March 5 to block access to their bank accounts. Circuit Judge Thomas Rebull granted a temporary restraining order over the funds on March 13.
Dr. Sarian was then hit with a second lawsuit June 11; it alleged at least $14 million was diverted from HSA corporate accounts from September 2024 and January 2026. Dr. Sarian denied the allegations and on Aug. 3, a judge ruled that Dr. Sarian could remain CEO of AHS.
Dr. Sarian’s lawsuit in California against Mr. Gill and American Healthcare Systems shareholder Aramais Paronyan, MD, are ongoing, the Herald reported.
Faisal Gill, Dr. Sarian’s former general counsel and shareholder in American Healthcare Systems, will remain CEO of HSA Florida following the dismissal, the Herald reported.
“As we have said from the start, this lawsuit had no basis and no merit whatsoever,” Dr. Sarian said in a Nov. 11 statement shared with Becker’s. “But the damage was real. The lawsuit and the negative press that came with it hurt our operations and our ability to secure funding, and that hurt our employees. … We are glad to put it behind us and stay focused on our patients and employees.”
The news comes amid payroll challenges at two AHS Illinois hospitals.
Granite City, Ill.-based Gateway Regional Medical Center funded its payroll Nov. 6 and as of 8 p.m. Central Time, Waukegan, Ill.-based Vista East Medical Center’s payroll was being processed, Evelina Sarian, COO of AHS, said in a statement shared with Becker’s.
Ms. Sarian also confirmed with Becker’s that Vista East employees have received their payment.
The Illinois Department of Public Health has placed both hospitals on “bypass” status — meaning ambulances are being sent to other facilities — amid the payroll challenges.
In early August, Dr. Sarian and his wife, Ms. Sarian, also provided a personal $1 million loan to cover the cash flow issues that delayed payroll for more than 600 Gateway Regional employees. Paper checks were received by employees on July 31, but they were asked to not cash them until the end of the workday Aug. 3.
