Receiver Orders Prisons To Cut Ties With Contractor
California's prison medical receiver Robert Sillen last week ordered two correctional facilities to terminate a business agreement with a Florida-based medical contractor, the Sacramento Bee reports.
Sillen's order was made in response to a court motion filed by Medical Development International that accused Sillen of refusing to pay the company $2.6 million it is owed (Furillo, Sacramento Bee, 4/10).
The state in September 2006 hired MDI to provide scheduling, transportation and billing services for California inmates seeking medical care.
Theodore Willich, vice president of MDI, says Sillen in January suspended payments because the company lacked a medical license, making the contract illegal (California Healthline, 4/6).
Sillen in his court documents also accused MDI of "billing irregularities" in the project at the two prisons. He added that MDI was practicing "corporate medicine" illegally because it lacked a license.
The California Department of Corrections and Rehabilitation failed to notify Sillen of the agreement, according to court documents.
John Hagar, chief of staff for Sillen, said that he has assembled a task force to maintain specialty care services at the two prisons (Sacramento Bee, 4/10).