OC Hospital That Sued Doctor Drops Suit, Now Owes $2.7 million

Two years ago, Integrated HealthCare Holdings, Inc, (IHHI), which owns Chapman Medical Center, Coastal Communities Hospital, and the Western Medical Centers in Anaheim and Santa Ana, filed a lawsuit against one of its own doctors. Dr. Anil Shaw had the temerity to question the company's dedication to the health care of its patients and the solvency of its financial state. It wasn't the first time--as the Weekly has previously reported--that IHHI has slapped a whistleblower with a lawsuit. In fact, the company has a habit of doing that, but this time, the scandal-plagued hospital chain chose the wrong guy to sue, a guy who happened to be backed by the wrong law firm.

Shaw's legal team: Dan Callahan and Marc Miles of the Newport Beach offices of Callahan & Blaine, which won the largest lawsuit in OC history a few years back and even took on the infamous security contractor Blackwater. Today, in a move that isn't surprising if you've read our previous stories on IHHI, the company agreed to drop its lawsuit against Shaw and pay $2.7 million to both Shaw and his Orange County Physicians Network, which owns a large share of IHHI stock.

The settlement follows the sudden resignation late last year of Bruce Mogel, IHHI's founder and CEO. More on Mogel and his alleged involvement in some truly bizarre stuff here and here. "This global settlement puts IHHI's hospitals on the path toward becoming the best in Orange County, undistracted by Bruce Mogel's pattern of abuse of power," Callahan says.  "With Mogel at the helm, IHHI entered questionable contracts and misguidedly used its resources to litigate against its own doctors, as opposed to concentrating on the health and safety of Orange County residents."


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