ABRAHAM MAY SUE HOSPITAL EX-CEO CLAIMS HE WAS WRONGFULLY FIRED.

Byline: Karen Maeshiro Staff Writer

LANCASTER - Antelope Valley Hospital directors denied a $2 million wrongful termination claim filed by its former CEO, Mathew Abraham, clearing the way for Abraham to sue the hospital in civil court.

The hospital board also agreed to cooperate with the Los Angeles County District Attorney's Office in any investigation it might launch, officials said.

Hospital officials previously said they tried unsuccessfully to get the District Attorney's Office to investigate Abraham, but prosecutors with the Public Integrity Division said they could not confirm that any complaint was made and encouraged at least one hospital official to send in a written complaint, records show.

``Our intention is to work with them to make sure they know what we know,'' hospital spokesman Ed Callahan said.

Abraham said he would welcome an investigation by law enforcement.

``It's a wonderful idea to have the D.A. look into aspects of Antelope Valley Hospital,'' Abraham said. ``That will save them money on legal expenses and save the district a lot of dollars that should be put back into patient care.''

On Wednesday the hospital board also voted to indemnify four of the five directors who were named in Abraham's claim, Abdallah Farrukh, Don Parazo, Deborah Rice and June Snow, should a lawsuit be filed.

Indemnifying the four directors means the hospital will pay for their legal bills and any judgments if they are sued and found liable but were acting within the scope of their authority, hospital officials said.

``It's up to Mathew to make the next move. The claim has been denied. Now he has the ability to file a lawsuit if he so desires,'' hospital attorney Frank Michelizzi said.

Director Steve Fox, a supporter of Abraham and the sole dissenting vote on his termination, voted for the claim denial, saying he was voting ``for the process.''

But Fox also said he is trying to get both sides to settle their dispute. ``I'm suggesting both sides meet and confer and come up with numbers (on which) they can compromise,'' Fox said.

Farrukh and Snow were appointed to speak with hospital attorneys about discussing a settlement with Abraham, said Snow.

``It doesn't mean we are paying him, necessarily,'' he said. ``I'm open- minded as far as this is concerned. It's to see if there's any way to put an end to this.''

``If they are interested in settling the case, they need to let us know what their proposal is,'' Abraham said.

Abraham's claim contends his ouster was retaliatory and resulted from his ``questioning, investigating and reporting unlawful and/or unethical conduct'' of hospital directors.

Hospital officials denied the charges, dismissing the former CEO's claims as ``absolutely false.''

Abraham was fired first in February, without cause, which meant he would receive $488,000 in severance pay. The board then voted in July to terminate Abraham, this time with cause, after completing an investigation.

The board is now demanding Abraham give back the five months of severance pay he received, directors said.

Abraham's contract included a controversial contract amendment, approved last November - eight days before new board members took office - that said if Abraham's CEO contract is terminated he will be paid $250,000 a year plus benefits for four years to negotiate insurance and HMO contracts for the hospital.

Within a week of firing Abraham, hospital attorneys said Abraham's ``golden parachute'' consulting contract was not legal.

The dispute over the contract and other issues are now pending in arbitration.

Karen Maeshiro, [phone]

karen.maeshiro(at)dailynews.com