HOSPITAL'S EX-CEO CLAIMS FIRING UNJUST.

Byline: Karen Maeshiro Staff Writer

LANCASTER - Former Antelope Valley Hospital administrator Mathew Abraham has filed a $2 million claim against the hospital for monetary damages for what he says was his wrongful termination.

The claim, a precursor to filing a lawsuit, contends that his ouster was retaliatory and the result of Abraham ``questioning, investigating and reporting unlawful and/or unethical conduct'' by hospital directors.

``We filed to reserve Mathew's right to bring action for wrongful termination,'' Abraham's attorney Charges Greaves said last week. ``The deadline is within 180 days of the event. He was fired on Feb. 13.''

Hospital officials denied the charges, saying they were ``absolutely false,'' and released reasons the board terminated Abraham a second time in July with cause.

The reasons included failing to follow the hospital district's bidding process in selecting the firm to manage the district's retirement funds; making misrepresentations concerning the company chosen to administer a retirement plan; destroying computer files; failing to disclose transactions with third parties that posed conflicts of interest; failing to obtain board approval for expenditures over policy limits; and failing to return district property on demand.

Greaves said his client denies all the hospital allegations. Greaves said he has asked for but never gotten from the hospital the evidence behind the charges that been lodged against Abraham.

``We would like to see the evidence they claim to have,'' Greaves said. ``These are claims they are raising for the first time five months after the fact and only after they have hired new lawyers and after arbitration has started. Since they couldn't defend the case on the facts or the law, they have decided to change the facts.''

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

The board is now demanding Abraham give back the five months of severance pay he has already 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 was terminated, he would 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 that Abraham's ``golden parachute'' consulting contract was not legal.

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

Abraham's claim contained allegations of conflicts and self-dealing by hospital director Dr. Abdallah Farrukh in connection with the hospital's purchase of a medical company.

The claim also targeted director Deborah Rice for ``submitting false claims and directing that district funds be used to pay travel and leisure expenses'' for herself, former board member Dr. Harvey Birsner and former Palmdale Councilwoman Shelley Sorsabal.

Abraham also alleged that his termination was the result of his refusal to accept bribes from Dr. Richard Merkin, sole owner and founder of Heritage Provider Network, which owns High Desert Medical Group, where director Dr. Don Parazo works.

High Desert Medical Group was Parazo's largest campaign contributor in November's election, donating $87,500 in cash and $70,000 in nonmonetary contributions described as campaign assistance.

Rice said the allegations were not true. She said Sorsabal came to a hospital board meeting in January and asked Abraham if she owes him or the hospital any money, and he said no. Rice said Abraham put expenses for Birsner on his hospital credit card.

``As far as any type of travel expenses, there's no way I could charge travel expenses; every expense has to be OK'd by administration,'' said Rice, who said she does not have a hospital credit card and used her own credit card for her expenses.

Merkin was out of town and could not be reached for comment. High Desert Medical Group administrator Rafael Gonzalez said he has known Merkin for 14 years.

``One reason why I am the administrator and continue to work for Dr. Merkin is based on his integrity and his ethics. I have never known or would expect him to do anything unethical or unlawful,'' Gonzalez said.

Farrukh could not be reached for comment.

Karen Maeshiro, [phone]

karen.maeshiro(at)dailynews.com

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