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THE JACKSON HERALD
WEDNESDAY, SEPTEMBER 29, 2010
BJC authority settles lawsuit filed by former employee
BY MARK BEARDSLEY
THE Department of Justice
and an anonymous former
employee have stripped the
BJC Medical Center Authority
of the remaining proceeds
of its $7.1 million sale to
Restoration Healthcare.
With little discussion and
no dissension, the author
ity approved a resolution
Monday night to settle a law
suit that remains sealed under
court order.
“We know who the plaintiff
is. We know what the claims
are,” said Charles Blair,
chairman, who also said that
the authority “emphatically
denies all the claims” made
in the suit.
Under the agreement
signed Monday - which is
still subject to approval by the
Department of Justice - the
authority will pay $125,000 to
settle the plaintiffs claim in
the suit and any other claims
the plaintiff might have. It
will also pay the plaintiff’s
legal fees.
In addition, the authority
agreed to pay $300,000 to
settle the civil claims against
the authority. But the real
kicker is that the authority
also agreed to pay all “excess
funds arising from the sale”
of the facility after all other
liabilities of the authority are
paid.
Blair said the authority had
$862,984 in cash Monday
afternoon before the settle
ment agreement was signed.
“We just want to get this
settled and move on,” Blair
explained. “Nothing can be
gained by continuing. We need
closure to this so Restoration
can move on.”
Restoration Healthcare, the
Tennessee-based company
that, with local investors,
bought BJC Medical Center,
is not a party in the suit, and
the suit pre-dates its involve
ment with BJC.
Steve Clapp. CEO of
Restoration, said the authority
made the suit known to him at
the time both parties signed
the letter of intent to make the
transaction.
In fact, no one can pin down
exactly when the lawsuit was
filed. Philip M. Sprinkle II
of Balch & Bingham LLP.
the authority’s attorney, said
it may have been years since
the plaintiff, known as the
“Relator” in all court doc
uments, first took his case
to the U.S. Department of
Justice.
A “Relator” is commonly
a whistleblower who files
suit alleging that someone
wronged the federal govern
ment. If the government thinks
the suit has merit and the suit
is successful, the Relator then
gets a piece of the settlement.
In this case, “Relator” appar
ently alleged that BJC “did
not comply with applicable
federal law and that, there
fore, the billings generated
by the authority as a result
of referrals from the medical
staff member should be disal
lowed.”
Sprinkle estimated that the
authority has spent $50,000
to $75,000 on the suit. That
does not include any expenses
borne by its insurance com
pany.
While the Department
of Justice has the final say
on the settlement, Sprinkle
expressed optimism that it
will be accepted.
“The government always
has the last right to accept
or reject resolution.” he said.
“We think we have a resolu
tion.”
Blair said closing this suit
winds up the authority’s legal
obligations. Its insurance
company is on the hook for
any damages from a lawsuit
filed against BJC and former
surgeon Dr. Keith Ash by four
of Ash’s former patients.
While he said the suit “is
not really affecting us at all,”
Clapp conceded that he’s
been awaiting its resolution to
move forward with renaming
the medical center to avoid the
new name being connected to
what Blair termed a “hang
over from the authority.”
“If somebody googled BJC,
they might get this issue,”
Clapp observed.
Sprinkle said that it is likely
that the Department of Justice
will eventually un-seal the
court documents, making the
name of the Relator and the
specific issues of the case
available.
“We had to get the federal
judge to approve this resolu
tion because it would be in
the press,” Sprinkle noted.
In essence, the settlement
comes out of Restoration
Healthcare’s pocket. Under
the sale contract, any leftover
money after the authority had
paid off all of its debts was
to go into a fund to pay for
indigent care for citizens of
Banks and Jackson counties.
If the Department of Justice
accepts the settlement, there
will be no money left over.
Clapp says that makes no
difference in terms of provid
ing the service.
“Our indigent care policy is
not going to change whether
the fund is there or not,” he
said. “We have not changed
the indigent care policy of
the organization. We will con
tinue to take care of patients.
In fact, our write-off (for indi
gent care) is up from past
years.”
Mobile home relocation approved by commissioners
BYANGELA GARY
THE JACKSON County
Board of Commissioners
approved a request Monday
night from Bobby Wilkins to
move an existing mobile home
at 2638 Hog Mountain Road to
701 Lebanon Church Road.
Commissioner Dwain Smith
said at an earlier work session
that he looked at where they
are asking to move the mobile
home and didn’t see a problem
with approving the request.
“We need to work with peo
ple who are doing the best they
can in this day and time,” he
said. ‘There has been no oppo
sition in the immediate area.”
OTHER BUSINESS
In other business, the BOC
approved the following:
•a resolution approving the
Northeast Georgia Solid Waste
Management Plan.
•designating Lavender Road
as a “no truck thru” road. The
road does not have a base and
is reportedly deteriorating due
to heavy traffic.
•an agreement with the
Northeast Georgia Regional
Commission for the transporta
tion program used at the senior
citizen’s center.
•extending the contract with
Jerry Weitz and Associates
to bring the county’s unified
development code into confor
mity with the new land use
policies set forth in the compre
hensive plan.
•a proposed contract with
Computer Software Design to
provide for business licenses to
be applied for and paid online.
•an easement agreement with
Timothy and Tina Brooks for
access to their farm at Stone
Creek Subdivision.
•a request to contribute
$3,000 toward the development
of a greenway master plan. The
Northeast Georgia Regional
Commission is providing
$30,000 for this project.
•a request to abandon a por
tion of the public right of way of
Stillwood Place in the Westcott
Place Subdivision.
•accepting a $12,000 grant
for a mass notification system
with a weather alert program.
•approval of an intergovern
mental agreement with the City
of Hoschton to allow the county
road department to assist the
city in preparing Industrial
Blvd., beginning at State Route
53 and ending at White Street,
for resurfacing.
•renaming the county
tax assessor’s department
as the Property Appraisal
Department.
•changing the hotel-motel
tax from six percent to five
percent.
•seven change orders related
to the senior citizen’s center
renovation project.
•two change orders related to
the historic courthouse project.
•an agreement with E.R.
Snell Contract for $5,218 for
items needed for a precast cul
vert design in the Zion Church
Road improvement project.
Christmas weekend planned in Jefferson
BYANGELA GARY
A WEEKEND celebration,
including a parade, tour of
homes and downtown activities,
is being planned in Jefferson to
kick off the Christmas season.
The Main Street Jefferson
organization discussed the plans
at its September meeting. Some
20 people attended the meeting,
which included a presentation
on the special purpose location
option sales tax (SPLOST) vote
on Nov. 2 and an update on the
streetscape project.
The holiday plans include
a “Downtown in December”
event planned for 5 to 9 p.m. on
Friday. Dec. 3. Stores in down
town will be open for the event
and caroling, carriage rides,
museum tours and other events
are being planned.
The parade will be held
on Saturday, Dec. 4, and the
Christmas tour of homes will be
on Sunday, Dec .5. Details on
these events will be announced
as they are finalized.
The group also discussed pur
chasing additional Christmas
decorations for the town. An
inventory of the existing decora
tions is also being completed.
Main Street manager Beth
Laughinghouse suggested that a
three-year, five-year and 10-year
plan on adding to the decora
tion inventory be established.
A committee was formed to
look into this with a report to be
made at the October meeting.
City manager John Ward and
Laughinghouse spoke on the
ongoing streetscape project. The
pouring of the sidewalk to the
museum has been completed
and next up is Storey Street to
Martin Street.
Two improvement projects
are under way in Jefferson —
the city’s streetscape project and
a department of transportation
project. The work at Regions
Bank and the old hotel are part
of the DOT project. The DOT
project involves installing new
signal mast arms.
Ward pointed out that rumors
that the streetscape project is on
its third contractor are not true.
He said it is the DOT project
that has had multi contractors.
Correction
The article in last week’s
edition about the Nicholson
City Council meeting con
tained an error. East Jackson
County High School band
director Jeffrey Rowser was
incorrectly named. We regret
this error.
Pendergrass man killed
in accident Thursday
A PENDERGRASS man
died last Thursday morning
in an accident with a bull
dozer and a trailer, according
to the sheriff’s office.
Brad Marlowe, 50, of
Pendergrass, was killed when
he was trapped between a
Gooseneck trailer and a bull
dozer at a Pond Fork Church
Road address in Talmo.
Two witnesses said
Marlowe was between the
vehicles and was working on
the trailer, which was parked
on an incline on the side
of the road, according to an
incident report. The trailer
reportedly began to pivot and
slide down the incline toward
Marlowe, who was pushed
into a blade on the bulldoz
er and pinned between the
vehicles.
One of the witnesses used a
pickup truck to pull the trail
er off Marlowe, who was pro
nounced dead on the scene.
A Jackson County inves
tigator, the coroner’s office
and an official with the
Occupational Safety and
Health Administration
(OSHA) responded to the
scene, according to an inci
dent report.
Jefferson council continues
to review sign ordinance
An amendment
would allow for
larger 1-85 signs
BY ANGELA GARY
A REVISION to the City
of Jefferson’s sign ordi
nance that would allow
larger signs to be located at
1-85 is being considered by
the town council.
The council is considering
revising the land use man
agement code sign regula
tions to address on-premise
signs on properties located
adjacent to Interstate 85.
Currently in C-2, LI and HI
zoning, the city code allows
a sign height of 20 feet max
imum and sign area of 96
square feet maximum. The
proposed revision would
allow a maximum 60-foot
sign with a maximum
350-square foot area. The
proposed changes would
apply to properties, whole
or in part, that are located
within a 1,000 foot radius
of the 1-85 interchanges at
Highway 129 and Highway
82. The council has also dis
cussed increasing the radius
to 1,500 feet of the inter
change.
The council did make
some revisions to the land
use management code at a
meeting Monday night but
no action was taken on the
sign issues. This will likely
be on the agenda at the next
council meeting, set for 6
p.m. on Monday, Oct. 11, at
the civic center.
The changes made this
week to the code clarify
the definitions of outparcels
on larger lots and accessory
retail and restaurant uses.
In other business Monday,
the council:
•amended the city’s alco
hol ordinance to allow for
caterer’s licenses and per
mits and to add to the pen
alties that the license holder
be held responsible, instead
of just the clerk, for selling
to underage people.
•reappointed Brant
McMullan to another term
on the Jefferson and Talmo
Planning Commission.
NOTICE OF LOGIC AND
ACCURACY TESTING OF
EQUIPMENT
Notice is hereby given that the logic and accuracy
testing on the touch screen voting machines and
the express poll machines to be used in the
November 2, 2010, General Election will begin at
9:00 a.m. on October 5, 2010, and continue until
completed. The testing will be held in the Jackson
County Probate Court Office basement area.
This 28th day of September, 2010
Margaret Deadwyler
Jackson County Election Superintendent
NO KIDDING!
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