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Old 10-06-2017, 12:14 AM
8,069 posts, read 9,730,817 times
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Awful if this ends up being true

Lawsuit: Corrupt giveaway at Broward Health to cost $2.5 billion over 25 years*|*Florida Bulldog

A corrupt deal at Broward Health that “gave away” the public hospital district’s radiation business for treating cancer patients is costing the troubled public hospital system an estimated $100 million a year in revenue.

That stunning allegation about taxpayer-supported Broward Health’s 25-year contract with 21st Century Oncology is contained in an amended complaint in the federal whistleblower case brought by former Broward Health chairman David Di Pietro and unsealed last week.

Florida Bulldog reported in February 2016 that Gov. Rick Scott had a financial interest in 21st Century when Broward Health’s board awarded it the unprecedented 25-year, no-bid contract to provide radiation oncology services at the district. Republican Scott, who as governor appoints Broward Health’s board, was then an investor in a private-equity firm that owned 21st Century.

“Under the terms of the original deal over the course of a 25-year contract, [former Broward Health President/CEO Frank] Nask gave away in excess of $2.5 billion in potential revenues to 21st Century Oncology with a potential profit margin in excess of $500 million,” says the complaint.

“In return, Broward Health would receive annual lease payments from 21st Century for the radiation equipment and hospital space. The lease payments totaled approximately $880,000 a year.”

The original length of the contract is for 10 years, with an option for the company to extend the contract three times for five-year periods.

Gov. Scott’s appointments ‘controlled’

According to the complaint, Nask accepted kickbacks delivered by the governor’s friend, 21st Century’s Fort Lauderdale lobbyist William “Billy” Rubin, to make the deal happen. The complaint says Rubin “controlled” the governor’s appointments to Broward Health’s board
Lawsuit claims lobbyist controls Broward Health board appointments - Sun Sentinel

After Di Pietro complained to Scott about Rubin’s influence, the governor “acted upset” but ignored Di Pietro's concerns, the lawsuit states. The conversation got back to Rubin, however, who said Di Pietro “made a mistake” by contacting the governor about “my appointments'' but offered to “move forward as a team.”
In 2011, the company hired Rubin to approach Frank Nask, then in his last years as chief executive officer of Broward Health, legally known as the North Broward Hospital District. The lawsuit states that Rubin was hired because he was a close friend of the governor’s and could guarantee to Nask that future board appointees would “protect Nask's continuing employment, salary, and pension as CEO.”

Nask agreed and took several highly questionable steps to force the contract through, the lawsuit states, pushing through disguised payments of “hush money” to the current holder of the contract and concealing from the board the negative financial impact of the new contract.

“Under the deal with 21st Century Oncology, since September of 2011, Broward Health has lost over $30 million,” the lawsuit states
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