DeCalonne v. G.I. Consultants, Inc.

197 F. Supp. 2d 1126, 59 Fed. R. Serv. 92, 2002 U.S. Dist. LEXIS 7121, 2002 WL 549949
CourtDistrict Court, N.D. Indiana
DecidedApril 10, 2002
Docket1:01-cv-00037
StatusPublished
Cited by1 cases

This text of 197 F. Supp. 2d 1126 (DeCalonne v. G.I. Consultants, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeCalonne v. G.I. Consultants, Inc., 197 F. Supp. 2d 1126, 59 Fed. R. Serv. 92, 2002 U.S. Dist. LEXIS 7121, 2002 WL 549949 (N.D. Ind. 2002).

Opinion

MEMORANDUM OF DECISION AND ORDER

WILLIAM C. LEE, Chief Judge.

On January 24, 2001, Plaintiff Pierre G. DeCalonne (“DeCalonne”) filed a complaint against his former employer, G.I. Consultants, Inc. (“G.I.Consultants”), alleging that G.I. Consultants had discharged him in violation of the federal False Claims Act, 31 U.S.C. § 3729 et seq. DeCalonne also brought pendant state law *1129 claims under the Indiana Wage Payment Statute, Ind.Code § 22-2-5, as well as for retaliatory discharge and breach of contract. G.I. Consultants moved for summary judgment on all of DeCalonne’s claims on November 30, 2001. Plaintiff filed a response in opposition to the motion for summary judgment on February 4, 2002, to which G.I. Consultants replied in support of its pending motion on February 19, 2002.

Also on February 19, 2002, Defendant filed a motion to strike portions of the affidavit testimony of Pierre DeCalonne and for attorney fees. Plaintiff opposed the motion to strike and the motion for attorney fees on February 28, 2002. G.I. Consultants filed their reply on March 14, 2002. On March 15, 2002, Plaintiff moved to have this final reply ignored on the basis that it was untimely filed. Defendant opposed the motion to have its reply ignored on March 19, 2002.

For the reasons set forth herein, Defendant’s motion for summary judgment will be GRANTED in part, and DENIED in part. Plaintiffs claims under the Indiana Wage Payment Statute will be STAYED pending the outcome of St. Vincent Hospital & Health Care Center v. Steele, 742 N.E.2d 1029 (Ind.App.2001), trans. granted. Defendant’s motion to strike and motion for attorney fees -will be DENIED. Plaintiffs motion to ignore Defendant’s March 14, 2002 reply will be DENIED.

FACTUAL BACKGROUND

I. DeCalonne’s Employment with G.I. Consultants

G.I. Consultants is a local medical practice specializing in gastrointestinal medicine. G.I. Consultants is governed by a Board of Directors consisting of all physicians at G.I. Consultants. (Memorandum in Support of Defendant’s Motion for Summary Judgment p. 2, n. 2).

DeCalonne was employed beginning in 1993 as G.I. Consultants’ Practice Administrator. (DeCalonne Aff. ¶ 2). 1 On or about July 19, 1996, DeCalonne entered into a written employment agreement with G.I. Consultants which stated that it would continue in effect until December 31, 2001. (Complaint Ex. A). The employment contract provided that G.I. Consultants could (1) on ninety days prior written notice, discharge DeCalonne without cause or (2) discharge DeCalonne with cause without any prior written notice. (Complaint Ex. A).

As Practice Administrator, DeCalonne reported directly to the Board of Directors. DeCalonne’s duties and responsibilities as Practice Administrator included implementation of Board objectives, management of the office, the computer system and personnel, payment of accounts payable, implementation of an electronic payroll system, preparation of the agenda for Board meetings, and record keeper at Board meetings. (DeCalonne Dep. 13-14).

II. Conflicts Between DeCalonne and Dr. Kaplan and the Board

Sometime in 1997, at the request of some G.I. Consultants physicians, DeCal-onne implemented a productivity bonus compensation system. Under this system, Dr. Martin Kaplan’s (“Dr.Kaplan”) bonus was the lowest among all the physicians at G.I. Consultants. (DeCalonne Dep. 25). Aso in 1997, Dr. Kaplan returned G.I. Consultants’ payroll system to a manual *1130 system from a computerized system. De-Calonne objected to this decision. (DeCal-onne Dep. 25-26).

Sometime in 1998 or 1999, DeCalonne asked his niece, a CPA, to review G.I. Consultant’s books. DeCalonne’s niece noticed that G.I. Consultant’s books were not in line with the books of Baden, Gage, and Schroeder, G.I. Consultant’s accountant. As a result, DeCalonne requested correcting entries from Baden, Gage, and Schroeder so that G.I. Consultants would have an accurate picture of how it was doing financially. In response, Dr. Kaplan instructed DeCalonne that he was not to behave as a “junior accountant” and that he should leave the books to Baden, Gage, and Schroeder. (DeCalonne Dep. p. 27).

Also around that time, DeCalonne noticed that there was a large increase in the fees G.I. Consultants charged for fiscal year 1998. He requested additional information from Baden, Gage, and Schroeder and presented the numbers to the Board. Shortly thereafter, DeCalonne states that his job responsibilities were curtailed. (DeCalonne Dep. 27-28).

In August 1999, the Board questioned DeCalonne about what he did for the corporation since the doctors had reduced some of his job responsibilities. In response to the Board’s inquiry, DeCalonne logged his daily work from August 31, 1999 to September 24, 1999 and gave each doctor a copy of the report. The Board conceded that DeCalonne was sufficiently performing work beneficial to G.I. Consultants. DeCalonne’s performance was never questioned again until after the events giving rise to the instant action. (DeCal-onne Dep. ¶ 10).

III. The Fraud and Abuse Compliance Program

In early November 1998, DeCalonne received a letter from G.I. Consultant’s attorney, Pete Mailers, warning DeCalonne about increased federal investigations into Medicare and Medicaid fraud and abuse and the steps some health care providers were taking to protect themselves. (De-Calonne Aff. Ex. 5). DeCalonne believed that creating a fraud and abuse compliance (“FAC”) program was within his job responsibilities and began to discuss with the Board the need for such a program. (De-Calonne Dep. 84; Ahmed Dep. 18). De-Calonne attended three national conferences to educate himself about fraud and abuse issues. (DeCalonne Dep. 36).

In December 1998, DeCalonne believed that, with a few minor exceptions, G.I. Consultants was in compliance with fraud and abuse regulations (DeCalonne Dep. 37). In early 1999, G.I. Consultants conducted a brief internal coding review. (DeCalonne Dep. 38). This review looked at the codes the doctors used to see if they fell with a standard bell curve of frequency.

Subsequent to the internal review, De-Calonne, on behalf of G.I. Consultants, hired the firm of Heaton & Eadie to conduct a baseline study of compliance within the corporation. (DeCalonne Dep. 41^13). DeCalonne did not hire Heaton & Eadie in order to gain information that he could then turn over to the government. Rather, DeCalonne wanted a neutral study so that the corporation would have an idea of what changes to implement. (DeCal-onne Dep. 51). To facilitate the audit, DeCalonne submitted confidential patient information to Heaton & Eadie. (DeCal-onne Aff. ¶ 19; DeCalonne Dep. 40). The parties dispute whether DeCalonne had authorization from the Board to do so.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States ex rel. Geschrey v. Generations Healthcare, LLC
922 F. Supp. 2d 695 (N.D. Illinois, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
197 F. Supp. 2d 1126, 59 Fed. R. Serv. 92, 2002 U.S. Dist. LEXIS 7121, 2002 WL 549949, Counsel Stack Legal Research, https://law.counselstack.com/opinion/decalonne-v-gi-consultants-inc-innd-2002.