Memorial responds to Phillip S. Schaengold's lawsuit - WTOC-TV: Savannah, Beaufort, SC, News, Weather & Sports

Memorial responds to Phillip S. Schaengold's lawsuit

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Statement for Media

In March 2011, Phillip Schaengold, former CEO of Memorial Health, filed a qui tam ("whistleblower") complaint in federal court against Memorial, alleging violations of various laws while he was the CEO. Schaengold was fired from the position in January 2011.

Schaengold originally sued Memorial for wrongful termination but lost in arbitration. As a result, he received no pay-out or severance.

Schaengold's qui tam complaint was filed more than three years ago. After an extended and unexplained delay, the complaint was only unsealed on June 24, 2014. Memorial denies the allegations contained in that complaint.

"We regret that Mr. Schaengold took this action and asserted allegations of wrongdoing which occurred while he was the CEO," said Memorial's board chairman Harry Haslam. "Memorial is a vital asset to this community and Mr. Schaengold's lawsuit appears to be in retaliation for Memorial's decision to terminate him in 2011."

Memorial is one of the region's largest employers and provides a significant amount of community benefit and charity care for patients who come from over 35 counties in Georgia and South Carolina. Last year alone, its emergency department treated close to 100,000 patients – the second highest number in the state of Georgia behind Grady Hospital in Atlanta.

"Memorial remains committed to its core mission of providing the highest quality healthcare, being a teaching hospital, and supporting our Team Members who work hard every day," continued Mr. Haslam.

Memorial also issued the following statement to employess through email:

Dear Team Members,

In March 2011, Phillip Schaengold, former CEO of Memorial Health, filed a qui tam (whistle blower) complaint in federal court against Memorial, alleging violations of various laws while he was the CEO.  As you know, Schaengold was fired from the position in January, 2011.

Schaengold originally sued Memorial for wrongful termination but lost in arbitration.  As a result, he received no pay-out or severance.

Schaengold's qui tam complaint was filed more than three years ago.  After an extended and unexplained delay, the complaint was unsealed (made public) late yesterday.  Memorial denies the allegations contained in that complaint.

Memorial remains committed to its core mission of providing the highest quality healthcare, being a teaching hospital, and supporting our Team Members who work hard every day.

We will provide more information as it becomes available, but we wanted to make sure you were aware before the issue is made public.

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