SPOKANE — A former neurosurgeon at the center of the largest health care fraud settlement in Eastern Washington is now involved in a new complaint against MultiCare Health System filed last week.
Dr. Jason Dreyer was under investigation for performing medically unnecessary surgeries, harming patients and falsifying diagnoses at Providence St. Mary’s Medical Center in Walla Walla when in 2019 he was hired by MultiCare Deaconess Hospital, according to a complaint filed in the United States District Court Eastern District of Washington.
Dreyer and another neurosurgeon, Dan Elskens, were accused in January 2020 of providing substandard care between 2013 and 2018 in Walla Walla.
The complaint alleged that Dreyer in particular filed Medicare claims for surgeries that were never performed, and that Elskens performed at least two surgeries that necessitated intervention by another surgeon to repair damage. The whistleblower brought this to the attention of superiors at Providence and urged their dismissal. Instead, the surgeons were placed on administrative leave and resigned.
In April 2022, Providence Medical Group agreed to pay $22.7 million to settle the complaint.
A year later in April 2023, Dreyer agreed to pay nearly $1.2 million to settle the complaint against him while not admitting guilt, according to the Tri-City Herald.
The new complaint against MultiCare alleges that the hospital was aware of concerns and “red flags” about Dreyer’s surgical judgment from his time at Providence but hired him anyway because he was a “workhorse.”
In October 2019, MultiCare placed Dreyer on an incentive compensation structure because he had been performing a high volume of surgeries and generating significant revenue, the complaint alleges.
The United States Attorney’s Office informed MultiCare in February 2020 that they were investigating allegations that Dreyer was performing medically unnecessary surgeries, among other issues.
Despite the notification and similar internal complaints, MultiCare continued to let Dreyer see patients until March 2021 when the Washington Department of Health restricted Dreyer’s license, preventing him from operating. In 2023, Dreyer voluntary surrendered his medical license in Washington .
Dreyer could not be reached for comment.
“As alleged in the Complaint, MultiCare was aware of serious concerns that Dr. Dreyer was putting patients in danger,” U.S. Attorney Vanessa Waldref wrote in a statement. “The Complaint alleges that MultiCare nonetheless made the decision to allow him to treat and operate on patients, even after it became aware of the federal investigation. This is an egregious breach of the public trust.”
MultiCare is accused in the complaint of falsely and fraudulently billing Medicare, Medicaid, the U.S. Department of Veterans Affairs Community Care program, TRICARE and the Federal Employee Health Benefits program.
“We believe the allegations to be unfounded and without merit, and we will vigorously defend MultiCare in this matter,” MultiCare wrote in a statement. “We can assure you that MultiCare’s commitment to our mission — partnering for healing and a healthy future — and our dedication to the health of the communities we serve is as strong as ever. The safety of our patients is and will always be our highest priority.”
A multi-agency investigation into MultiCare began when a former patient filled a whistleblower complaint in April 2022.
“Health care providers that perform medically unnecessary procedures undermine the public’s trust in the health care system and exploit taxpayer-funded programs,” Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General wrote in a statement.
