Ex-CEO blew the whistle on Bradenton’s MCR Health and then he got fired, lawsuit claims
Patrick Carnegie, the former president and CEO for MCR Health, Inc., filed suit this month against his former employer.
The lawsuit alleges violations of the Florida Whistleblower Act and breach of contract by MCR Health, Inc., a Bradenton-based nonprofit corporation.
Carnegie was employed by MCR Health from 2014 through Nov. 4, 2022.
When Carnegie became CEO in 2018, the company was $30 million in debt, the lawsuit said. At the time of his termination, MCR Health’s revenue exceeded $150 million with excess revenue of over $25 million and net operating cash of over $15 million, according to the lawsuit.
The lawsuit claims Carnegie was terminated for cause during a Nov. 4 conference call with the chairman of the board, Garry Lowe, and the board treasurer, Stephen Wicker.
After the call, Carnegie received a letter providing “vague reasons for his termination,” the lawsuit said.
“To this date, Plaintiff [Carnegie] has no idea what alleged specific actions on his part, violated his agreement or any rules, policies and/or procedures of MCR nor does he have any idea what alleged unethical, unprofessional, fraudulent, unlawful or any other action on his part that was adverse to the interest, reputation or business of MCR,” the lawsuit said.
The lawsuit alleges Carnegie was fired in retaliation for reporting that he was required to “illegally pay” the MCR Health chairman of the board cash money to continue in his role with the company and be in good standing with the board.
The lawsuit also alleges:
▪ That Carnegie was forced to work while on mandatory leave of absence in violation of the Agency for Health Care Administration regulations.
▪ That Carnegie blew the whistle on MCR Health’s board of directors for not following Health Resources & Services Administration requirements regarding board compensation.
Further, the lawsuit alleges that his firing for cause was so that MCR Health would not be required to pay him 18 months as specified by his contract.
The lawsuit seeks reinstatement for Carnegie to his former position, along with reinstatement of full fringe benefits and seniority. Carnegie has also demanded a jury trial and for MCR Health to reimburse his attorney fees.
Carnegie’s removal came less than three weeks after he entered into a pre-trial intervention program in a criminal case in which he faced a domestic battery charge involving his ex-girlfriend.
As part of the agreement, prosecutors amended the charge to trespassing on a construction site. The State Attorney’s Office formally charged Carnegie in June 2021 with burglary with assault or battery. He was arrested and released on a $75,000 bond.
The MCR Board of Directors acknowledged to the Bradenton Herald in 2021 that they were aware of his arrest, but said that Carnegie insisted the allegations were false and that he intended to defend himself.
Based on the principle of innocent until proven guilty, the board waited until the criminal proceedings concluded before taking any further action.
Carnegie’s attorney, Roger D. Futerman, said in December that he did not believe his client deserved to be removed from his job at MCR Health, considering that the charge had been reduced to a misdemeanor and would likely be dismissed.
MCR attorneys on Friday declined to comment on the lawsuit.
“We cannot comment on pending litigation,” they said in a statement.
More about MCR Health
MCR operates over 48 healthcare centers and 19 pharmacies, providing a wide range of services including family practice, internal medicine, pediatrics, OB/GYN, behavioral health, vision, dental, podiatry, cardiology, general surgery and many other medical services, the company website says.
“Our mission is to provide all patients including the underserved and uninsured access to quality primary care and preventative health education regardless of race, sex, disability, or economic status. Last year alone MCR provided over $59 million in charity care for the uninsured,” the website says.
This story was originally published February 20, 2023 at 5:50 AM.
