A former head of the Massachusetts health insurance industry and former president and chief executive officer of the nation’s largest insurer has agreed to a $150 million payout from his former employers.
Dr Peter Vartan was the president of the American College of Physicians and a former chief executive of Health Care Services Corporation, which also includes Massachusetts General Hospital and the Boston Health Care System.
In a statement, American College President Dr. James C. Schleifer said the agreement was “an historic, historic day for our profession”.
“Peter Vartans work has been to protect our patients from catastrophic events, such as heart attacks and strokes, while providing timely care,” Dr Schlerier said.
“The ACP is committed to the care of our patients and we are proud to have helped Peter Varnan achieve that goal.”
Dr Vartann had faced multiple legal and regulatory challenges in his career, including allegations of medical malpractice in relation to a 2009 incident in which he failed to respond to a doctor’s emergency chest tube aspirate.
The incident resulted in a $3.2 million payout by American Health Care Insurance, the largest of his malpractice claims, which Mr Vartancourt had to pay out on the advice of his doctor, Dr. John G. Macfarlane, the former head and executive vice-president of the ACC.
“As the former president for ACC, Dr Vartani was responsible for the care and leadership of a network of more than 300,000 patients who depended on him to provide care, while also taking care of their families and families’ families,” Mr Schleiser said.
The deal comes just days after the ACC’s board of directors unanimously approved Dr Varnans payout, despite his efforts to keep his claims secret.
The ACC is a private insurance association that covers all the states.
The organisation has said it will not discuss any individual’s personal health matters.
Dr Varnancourt was an expert witness at the ACC investigation, and his actions in the case helped to secure the payment, ACC President Dr Schlegel said.
In December, he was sentenced to five years of probation and ordered to pay $3 million in restitution.