Florida Orthopedic Surgeon Continues Litigation

A Florida orthopedic surgeon filed an unlawful retaliation lawsuit against Orlando Health, Inc. and two of its subsidiaries alleging the hospital fired him after he performed out-of-network operations, treated patients at a second office, and made out-of-network referrals.

Ayman Daouk, M.D. is suing Orlando Health, Physician Associates, LLC, and Orlando Health Physician Group, Inc. He is alleging unlawful retaliation in violation of Florida’s Private Sector Whistle-Blower Act. Dr. Daouk filed his lawsuit in Florida’s Orange County Circuit Court.

This lawsuit is not the first action Dr. Daouk has taken against Orlando Health. Dr. Daouk previously filed a whistleblower lawsuit against Orlando Health and three of its subsidiaries with similar allegations. This spring he voluntarily dismissed the lawsuit. For OTW’s previous coverage of the whistleblower lawsuit, see “Orthopedic Surgeon Gives Whistleblowing A Shot.”

Dr. Daouk was employed by Physician Associates from 2009 to 2018. During this time, Dr. Daouk claims he routinely achieved excellent Press Ganey patient satisfaction scores and was among the top 10 in revenue earners for the practice.

The complaint alleges that initially Physician Associates only suggested that all physician referrals be within the Orlando Health integrated network. However, Dr. Daouk argues that “such referrals became a mandate, with threats made against those who failed to comply.” In his complaint he references several emails to support his accusations.

Dr. Daouk contends that using only Orlando Health facilities was harmful to his patients. The complaint asserts that using Orlando Health facilities “resulted in patients not receiving timely care, timely diagnoses, timely imaging tests, and ultimately timely treatment.”

In 2018, Dr. Daouk was removed from the Physician Associates’ board and his employment was terminated. He contends that his employment was terminated because he continued to do surgeries at non-Orlando Health facilities. He further argues that he was terminated because he refused to violate federal and state law.

Federal law prohibits hospitals and other medical providers from paying physicians in exchange for referring them business paid for by government-funded healthcare programs, such as Medicare and Medicaid. Further, Florida law prohibits payment in exchange for referring an individual to a person for furnishing any service for which payment may be made under the Florida Medicaid program.

Dr. Daouk asserts that by offering salaried employment in exchange for patient referrals, Orlando Health, Physician Associates, and Orlando Health Physician Group violated federal and state Anti-Kickback Statutes. Further, he claims that the referrals also violate the Stark Law, the federal False Claims Act, and the Florida False Claims Act. He maintains that his termination was in retaliation for his refusal to violate federal and state law.

As of the date of this article Orlando Health, Physician Associates, and Orlando Health Physician Group have not filed a response.