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Whistleblower says she was fired after reporting fraud allegations to feds

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Memorial Hospital Photo by Angela Lewis/Times Free Press Memorial Hospital Photo by Angela Lewis/Times Free Press

CHATTANOOGA, TN (Times Free Press) --  A former Memorial Health Care System employee says she was fired after reporting fraud allegations to federal authorities months before Memorial executives say they self-reported possible violations.

Carmen Fletcher-Schreane filed the whistleblower complaint in January 2009, but it was sealed until June this year while federal authorities conducted an investigation. Fletcher-Schreane served as the hospital's manager of contract and compliance from December 2007 to December 2008, when she was fired.

The complaint states Fletcher-Schreane first reported alleged violations to her boss and other Memorial administrators in June 2008. When Memorial did not do anything to correct the violations and penalized Fletcher-Schreane by changing her duties, she gave the information to the FBI and the Department of Health and Human Services in November and December, the complaint states.

In a settlement reached with the federal government last week, Memorial agreed to pay $1.3 million over claims that it allowed doctors to use space at the hospital without paying adequate rent and provided space and services at a price lower than market share.

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