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Fort Myers-based 21st Century Oncology announced it is seeking Chapter 11 bankruptcy protection, a decision
that follows years of declining revenue, two recent multi-million dollar settlements related to billing fraud
allegations and a long list of ongoing lawsuits. Frank Gluck/The News-Press
Two of the nation’s largest cancer-care providers are accused of engaging in an illegal
“gentleman’s agreement” to divide up treatment services in Florida.
The allegation against Florida Cancer Specialists & Research Institute and 21st
Century Oncology is one of a laundry list of claims — including gender discrimination,
fraudulent Medicare billing and unsafe medical practices — leveled against the
companies in a 50-page federal whistleblower lawsuit filed last year that had, until
recently, been under seal and out of the public eye.
According to the lawsuit, Florida Cancer Specialists and 21st Century Oncology paid
“millions of dollars to each other in the form of exclusive patient referrals in order to
secure their individual monopolies in Southwest Florida of medical oncology (Florida
Cancer Specialists) and radiation oncology (21st Century Oncology).”
The lawsuit was brought by Sharon Dill, Florida Cancer Specialists vice president for
human resources and chief human resources officer between 2012 and 2015; and
Christina Sievert, the company’s vice president of clinical financial services between
2013 and 2015.
Both say they were fired. Dill claims she lost her job after disclosing an unspecified
disability. Sievert said the company retaliated against her when she claimed gender
discrimination.
Benjamin Yormak, the attorney for Dill and Sievert, said his clients have company
documents to back up their claims.
“They were privy to a number of wrongdoings," Yormak said. "If you look at the
services 21st Century provides and Florida Cancer on a national basis or through the
state of Florida, you'll notice that they should be direct competitors. If you look at the
services offered, say, from Sarasota-Bradenton to Marco (Island), you'll notice that
there's not competition between them."
Kyle Cohen, an assistant U.S. Attorney in Fort Myers who has been involved with
recent federal whistleblower investigations involving 21st Century Oncology, said the
Department of Justice decided several months ago not to intervene in the civil case for
now.
Cohen would not comment when asked if a criminal investigation is underway. But, in a
recent legal notice, 21st Century Oncology acknowledged that a federal inquiry into
"certain potential criminal antitrust violations regarding the market in Florida" is
underway.
Dr. William Harwin, the founder and president of Florida Cancer Specialists, and Dr.
Daniel Dosoretz, the founder and former CEO of 21st Century Oncology, are also
named as defendants.
Harwin also said little Wednesday morning: "I'd love to comment, but unfortunately I've
been told not to comment. I really wish I could speak. I'd love to."
The company's chief legal officer, Tom Clark, released a more formal written
statement:
“At Florida Cancer Specialists, we are focused on providing the best care to our
patients and are committed to complying with all the rules and regulations that govern
medical centers across the state. The government declined to intervene in this case.
We take these allegations seriously and are looking into the matter.”
This happened, the suit claims, over the objections of some staffers who worried this
may not be safe.
Yormak said it is still unclear if patients suffered medical harm as a result, though
investigators are looking into it.
Dill and Sievert also accuse Florida Cancer Specialists of administering Feraheme, an
expensive intravenous prescription drug used to treat iron-deficiency anemia in adults
with chronic kidney disease, to some patients who did not need it.
The company commonly treats patients with anemia related to their chemotherapy, the
lawsuit states, but that anemia does not necessarily indicate chronic kidney disease.
Because of Medicare reimbursement rates for the drugs, and the discounts the
company received from drug suppliers, Florida Cancer Specialists' prescribing of the
drug was especially profitable.
The lawsuit claims that company leadership knew that the drug was being
unnecessarily prescribed and encouraged it for years.
Publicly operated Lee Health, Southwest Florida's largest hospital system, leases
space to both companies at the Regional Cancer Center in Fort Myers and provides
some cancer treatment to their patients.
Lee Health is not listed in the lawsuit, and its representatives did not comment on it
Wednesday.
Florida Cancer Specialists treats patients throughout Florida. On the Gulf Coast, it has
centers from Tampa Bay to Naples. Harwin operates out of a $8.5 million office the
company opened last year on Gladiolus Drive in south Fort Myers.
Fort Myers-based 21 Century Oncology operated 179 treatment centers, including 143
centers in 17 states. It has another 36 centers in seven Latin American countries.