The following executives left Renown yesterday, effective immediately:
• Jim Miller, president and CEO
• Kelly Testolin, JD, general counsel
• Andy Pearl, vice president of system development
• Phil Schweber, business development administrator
In the report, Renown Chairman David C. Line said the executives did not provide the board of directors with all the information regarding Renown’s 2010 acquisition of Sierra Nevada Cardiology Associations. Cardiologists from SNCA sued Renown in November 2011, claiming the system used fraudulent tactics in negotiations to purchase the practice.
Renown settled that lawsuit by agreeing to pay the cardiologists $4 million in total compensation and approximately $872,000 in attorneys’ fees, according to the report. The system’s acquisition of cardiologists also prompted antitrust action from the Federal Trade Commission, which ordered Renown to release a number of SNCA cardiologists from non-compete provisions in their contracts.
“The snowball effect led to the [SNCA] lawsuit,” Mr. Line told the Gazette Journal. “Had the board known the facts, this would have been resolved a long time ago. Key aspects should have been shared with the board. As the facts unfolded in the trial, it became clear to the board that we did not have all of the facts, so the board took appropriate action.”
More Articles on Renown Health:
CEO, 3 Other Executives Resign From Renown Health After Legal Probe
14 Nevada Cardiologists Sue Renown for Fraud, Conspiracy in Compensation Agreement
Renown Health Settles With Nevada AG on Cardiology Practice Acquisitions
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