Fredericksburg.com - SUITS SHED LIGHT ON CLINIC

search local
Follow us on Twitter Find us on Facebook

Get a printer-friendly version of this page. E-mail this story to a friend.
Make a post about this story on FredTalk.



Visit Jim Hall's blog: Rapid Assessment
Visit Janet Marshall's blog: In Moderation

-

View More Images from this story

Visit the Photo Place

SUITS SHED LIGHT ON CLINIC
Two lawsuits offer a rare look at the business dealings of one of the region's largest medical practices.
Date published: 2/12/2012

BY JIM HALL

Internal disputes in a thriving medical practice in Fredericksburg were finally resolved earlier this month, but not before an audit by Mary Washington Hospital resulted in a refund of a quarter-million dollars from the physician group.

A hospital official confirmed that the audit took place at Central Virginia OB/GYN, and that Dr. Joon Kil, owner of the practice, agreed to refund $250,000. The official described the incident as a "misunderstanding" on Central Virginia's part.

However, two lawsuits filed against Kil by former employees used harsher language. The suits, which have been settled, claimed that Kil defrauded the hospital and manipulated one of its loan programs for his personal gain. Kil denied the allegations.

The lawsuits were filed separately in Fredericksburg Circuit Court, beginning in December 2010.

Dr. Barbara Mercado, an obstetrician/gynecologist at Central Virginia OB/GYN for more than 11 years, was the first to challenge Kil. Her suit came two weeks after Kil had her fired, according to court papers.

Bobbi Clarke, Kil's former practice manager, was the other accuser. Clarke worked for Kil for 23 years before he fired her in January 2011, according to court papers. She filed her suit three months later.

Mercado and Kil settled her complaint in about a month.

However, Clarke's complaint lingered on the court docket for months, with both sides trading charges and counter-charges.

On Feb. 1, after The Free Lance-Star requested interviews with Kil and Clarke, the two reached a settlement and issued a joint statement.

"In working through the details of her departure from the practice, both Ms. Clarke and Dr. Kil have made statements and taken actions which they now regret," the statement said in part. "At this time, they have resolved all of their differences and the lawsuit that was pending in the circuit court is being dismissed at their mutual request."

The terms of the settlements in both lawsuits were not revealed.

Even so, the court papers offer a rare look at the financial dealings of a popular medical group.

The papers describe Central Virginia OB/GYN as a busy practice with significant revenues, and workers who, at times, were indifferent to basic accounting controls. As Kil himself said in his rebuttal to Clarke, Central Virginia had "a culture in which employees did not maintain a proper accounting of the monies."


1  2  3  Next Page  

PAY DISPUTE BRINGS SPLIT AT PRACTICE

BY JIM HALL

The lawsuits filed by two former employees also allege that Dr. Joon Kil improperly siphoned money from his medical practice for personal and family uses.

Bobbi Clarke, former practice administrator at Kil's Central Virginia OB/GYN, makes the allegation, as does Dr. Barbara Mercado, a former obstetrician/gynecologist there.

Clarke and Mercado filed separate lawsuits against Kil in Fredericksburg Circuit Court. Mercado and Kil settled her suit last year. Clarke and Kil settled her suit Feb. 1.

The suits allege that Kil:

Used Central Virginia money for personal expenses for himself and his family, including vacations, clothing, college tuition and entertainment.

Credited payments received for the work of his employee physicians to his own account rather than to the employee doctors' accounts, which lowered the income of the employee physicians or made it harder for them to earn performance bonuses, according to the lawsuits.

Deposited third-party payments intended for Central Virginia OB/GYN to his personal accounts rather than to the practice's account.

Used Central Virginia OB/GYN funds to pay the expenses of his other businesses.

In his rebuttal to Clarke's lawsuit, Kil acknowledged that he and other employees at the practice "directed Central Virginia funds to himself and family members to cover expenses of various kinds."

But he denied that he deposited third-party payments intended for Central Virginia OB/GYN into his personal accounts.

He also denied that he funded his other businesses from Central Virginia accounts.

And he denied that he allocated payments to himself that should have gone to his employee physicians.

Instead, he blamed Clarke, because she had control of the day-to-day finances of the practice.

He said in court papers that she made changes to "billing records for the purpose of reducing certain employee physician compensation."

He also accused Clarke of embezzling $130,000 from the practice in 2010 by charging personal items to the practice's charge card.

Clarke "created and encouraged a culture in which employees, specifically including herself, did not maintain a proper accounting of the monies of Central Virginia," according to Kil's rebuttal.

Kil and Clarke declined requests from The Free Lance-Star for interviews.

The two, through their attorneys, did offer a joint statement, which said in part:

"Dr. Joon Kil and Ms. Bobbi Clarke worked closely together for 25 years, building Central Virginia OB/GYN Group, Inc. into a thriving medical practice. In 2011, Ms. Clarke retired from the practice. In working through the details of her departure from the practice, both Ms. Clarke and Dr. Kil have made statements and taken actions which they now regret."

Jim Hall: 540/374-5433jhall@freelancestar.com

DOCTOR SIPHONED FUNDS FOR PERSONAL USE, SUITS ALLEGE

Dr. Joon Kil and Bobbi Clarke, his former practice manager, declined comment about the allegations in her lawsuit against him. The two settled that lawsuit Feb. 1 and offered The Free Lance-Star a joint statement.

The statement, in its entirety, says:

"Dr. Joon Kil and Ms. Bobbi Clarke worked closely together for 25 years, building Central Virginia OB/GYN Group, Inc. into a thriving medical practice. In 2011, Ms. Clarke retired from the practice. In working through the details of her departure from the practice, both Ms. Clarke and Dr. Kil have made statements and taken actions which they now regret. At this time, they have resolved all of their differences and the lawsuit that was pending in the circuit court is being dismissed at their mutual request. Both wish each other every happiness and success as they move on with their lives."



Date published: 2/12/2012



Comments guidelines

1. Be respectful. No personal attacks.
2. Please avoid offensive, vulgar, abusive, hateful or defamatory language.
3. Read and follow THE RULES.
4. We will block violaters and ban repeat offenders.









The Free Lance-Star fredericksburg.com 93.3 WFLS Print Innovators 96.9 The Rock 99.3 The Vibe wntx radio