Corporate Compliance

Whistleblower suit against Iasis dismissed

Compliance Monitor, April 9, 2008

U.S. District Judge James Teilborg dismissed a private whistleblower lawsuit against Iasis Healthcare, according to an Iasis press release. The lawsuit was unsealed in August 2007 and the Department of Justice declined to intervene without giving a reason.
The lawsuit, filed in 2005 by Jerre Fraizer, former vice president for ethics and compliance for Iasis Healthcare, detailed alleged misconduct including:
  • Allowing medically unnecessary procedures, including interventional cardiovascular procedures
  • Leasing space below market value
  • Entering into contracts with doctors for sham directorships for which they did little or no work
  • Other improper incentives and payments to doctors



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