PORTER COUNTY: Former Porter hospital CFO sues during switchover
VALPARAISO | A lawsuit filed against Porter hospital by a former official won't be helped by its timing on the heels of the hospital's sale, county attorney Gwenn Rinkenberger says.
"It doesn't really make any difference because the cause of action arose while Porter was a county hospital," Rinkenberger said. "They could've filed it 10 days after the sale, or a year and a half ago."
The suit claims the hospital didn't have substantial cause when they fired King in May 2005, and that King was ordered by his boss to perform the tasks that led to his termination.
On April 25, less than a week before the hospital closed its sale to Community Health Systems, lawyers for Hugh King, former Porter Chief Financial Officer, filed a breech of contract lawsuit in Porter Superior Court.
Rinkenberger said the fact that there currently is no hospital Board of Trustees won't affect the suit.
The suit reached hospital officials Tuesday, the official start of Community ownership, timing that "surprised" Rinkenberger. Community paid $120 million to the county, which assumes the hospital's liabilities, including lawsuits.
King was fired two years ago, after one-time hospital board member Robert Parks said he secretly taped talks wherein King said the hospital could be sold, and executives would escape with "golden parachute contracts."
In a statement announcing the firing, Chief Executive Officer Ron Winger said, "After a detailed investigation, we have determined without a doubt that Porter's code of conduct and our existing written employment contract have been violated."
King was "just following instructions" from Winger to meet with Parks when he did, said King's attorney Jeffrey Sturm. Sturm said because Parks had been a member of the hospital's board, "it was certainly not privileged information."
Sturm called the lawsuit's timing coincidence, but that "(King) just wanted to see what was going on" with the sale.
King is seeking an unspecified amount for losses and damages related to his firing. He was paid a $188,000 annual salary and a $16,000 signing bonus when he was hired in June 2003.
The county will work with Community's attorneys on the suit, Rinkenberger said.
Porter spokeswoman Deb Butterfield said the hospital doesn't comment on pending litigation.
Posted in Local on Thursday, May 3, 2007 12:00 am Updated: 10:11 pm.
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