Texas Medical Centers Settle for $15 Million Over Claims of Delegating Surgery to Trainees

The charges against the physicians were dismissed as part of the $15 Million settlement. (File photograph/Shutterstock)

Three Texas medical institutions have agreed to a $15 million settlement following a federal investigation into whistleblower claims that three heart surgeons were running multiple operating rooms simultaneously and delegating complex surgical duties to “unqualified medical residents.”

The whistleblower alleged Drs. Joseph Coselli, David Ott, and Joseph Lamelas left “unqualified medical residents” to perform thousands of complex heart surgeries between 2013 and 2020 at Baylor St. Luke’s Medical Center (BSLMC) in Houston without the patients’ knowledge, according to a press release from the U.S. Attorney’s Office for the Southern District of Texas on June 24.

“The complete disregard for patient safety exhibited by these three doctors put patients at risk and violated Medicare regulations for their own convenience and greed,” Jason E. Meadows, special agent in charge at the Department of Health and Human Services Office of Inspector General, said in a statement. 

Federal officials said the practice allegedly allowed the surgeons to perform up to three cardiac operations at the same time and fraudulently bill Medicare for all of them. The physicians allegedly left the operating room during surgery “without designating a backup surgeon,” according to the press release.

“Patients entrusted these surgeons with their lives—submitting to operations where one missed cut is the difference between life and death,” U.S. Attorney General Alamdar Hamdani said in a statement. “Allegedly, the patients were unaware their doctor was leaving for another operating room. This settlement reaffirms the importance of Medicare requirements governing surgeon presence and ensuring that no physician—no matter how prominent or successful—can skirt around the rules.”

Investigators said the surgeons allegedly falsified medical records by stating they were present for the entire operation. The surgeons are also accused of failing to attend the surgical timeout, a critical moment when the entire team pauses to identify key risks and prevent surgical errors, the federal lawsuit claimed.

BSLMC, part of CommonSpirit Health, is a joint venture between Baylor College of Medicine (BCM) and St. Luke’s Health at the Texas Medical Center in Houston. Drs. Coselli and Lamelas are teaching physicians who performed services at BSLMC. Dr. Ott is a physician affiliated with Surgical Associates of Texas.

The entities jointly agreed to pay a record $15 million settlement to resolve the claims. The False Claims Act entitles a private whistleblower who commences a suit to a portion of the recovery, and the whistleblower will receive $3.75 million in this case.

The charges against the physicians were dismissed as part of the settlement.

‘No Patients Were Harmed’

In a statement, BCM’s general counsel, Robert Corrigan Jr., denied that the college participated in the alleged violations.

“Baylor College of Medicine did not engage in conduct that violates any applicable federal law or regulation,” Mr. Corrgan said in an email to The Epoch Times. “It is also important to note that no patients were harmed.”

He stated that the settlement was not an admission of liability, but that they agreed to the payment after considering the potential cost of litigation.

“The settlement agreement acknowledged that BCM disputed that any violations of federal law occurred and that the College being a party to the agreement is not an admission of liability by Baylor,” Mr. Corrigan continued. “The College decided to amicably resolve the dispute prior to a trial on the merits after considering the cost and expense incurred by Baylor to date, and anticipated future costs and expenses, including attorneys’ fees.”

A spokesperson for BSLMC said the agreement resolved a “billing matter” related to government requirements and was not an admission of wrongdoing.

“Baylor St. Luke’s Medical Center has reached an agreement with the Department of Justice (DOJ) to resolve a documentation and billing matter involving compliance and billing requirements set forth by the Centers for Medicare and Medicaid Services (CMS),” the hospital said in an emailed statement to The Epoch Times. “The DOJ claims are strictly allegations, and the settlement by Baylor St. Luke’s is not an admission of liability.

“Baylor St. Luke’s remains committed to complying with all CMS regulations,” the spokesperson continued. “Baylor St. Luke’s is a world-renowned academic medical center that cares for patients from throughout the world with the most complex conditions. The hospital provides its patients with safe, high-quality care and remains committed to compliance with all applicable regulations.”