Settlement in Woldt vs. MCMC case - Insurance News | InsuranceNewsNet

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October 7, 2014 Newswires
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Settlement in Woldt vs. MCMC case

Erin Trester, The Daily Globe, Worthington, Minn.
By Erin Trester, The Daily Globe, Worthington, Minn.
McClatchy-Tribune Information Services

Oct. 07--SLAYTON -- A settlement between former Murray County Medical Center (MCMC) physician assistant Daniel Woldt and the MCMC Hospital Board of Directors was reached Sept. 24, and court documents released Monday state Woldt will receive more than $700,000.

"The coverage provided by MCMC's insurance policy is reduced by each dollar paid for attorneys' fees and costs in defending the case," the MCMC board said in released statement. "Thus, if the lawsuit continued for one to two more years, which was entirely possible, the costs of defending the case would have continued to deplete the amount available to cover any possible verdict."

Settling the case now allowed MCMC to use $710,800 of insurance proceeds toward the settlement.

"We understand that emotions may still be high and that some members of the public may want to continue to discuss the conflict," the MCMC board added. "We ask that such discussions cease.

"We have entered into a settlement agreement with Woldt with all parties not agreeing not to disparage any other party or to discuss this litigation further. We ask that you do the same."

Under the settlement's term, Woldt receives $41,202 for supplemental wage payment and $370,820 for alleged compensatory, non-wage damages Woldt claimed to have suffered in connection with the claims asserted in the original complaint. Woldt also received $337,977 for legal fees and other expenses in connection with the matter.

Woldt originally filed the lawsuit in May 2013, claiming that MCMC punished him after he reported two cases of Medicare fraud and breached his contract. He also claimed former MCMC CEO Meldon Snow published false, exaggerated and defamatory information regarding him, and that MCMC and Snow defamed him and deprived him of his right to free speech.

Court documents state the payment to Woldt is not a payment of severance, separation pay or pay for any compensation for services rendered after the date of Woldt's resignation of employment with MCMC.

Woldt was employed at MCMC from 2006 through April 2013.

___

(c)2014 The Daily Globe (Worthington, Minn.)

Visit The Daily Globe (Worthington, Minn.) at www.dglobe.com

Distributed by MCT Information Services

Wordcount:  351

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