In the midst of a serious medical malpractice scandal, Mid Hudson Medical
Group decided to sell off its assets to Mount Kisco Medical Group. Many
are speculating that one of the main reasons they made this move was to
avoid future monetary damages from the onslaught of medical malpractice
lawsuits they are facing. However, as
Attorney Michael Varble of Michael R. Varble & Associates, P.C. points out, many plaintiffs
will face little trouble obtaining settlements (as long as the win) from
the medical group, regardless of where their assets are.
Though Attorney Varble is not involved in the case, he was interviewed
by the Poughkeepsie Journal due to his knowledge and insight on medical
malpractice and injury claims.
"If Mount Kisco is purchasing the assets, they purchase the liabilities
as well," Attorney Varble said. "Normally, the liabilities and
assets are sold as one piece. You can't just pick and choose parts
of a business." With this in mind, Mount Kisco will likely inherit
the legal challenges and obstacles that Mid Hudson created or continue
to work with them through the process.
The Mid Hudson surgeon responsible for more than 250 medical malpractice
lawsuits is currently serving time in prison for running a multi-million
dollar insurance defrauding scheme. Some businesses will have excess liability
insurance, which could result in high limits in this particular case.
Last year, several attorneys representing plaintiffs involved in the case
attempted to put an end to the asset selling, claiming that it would hinder
their settlements; however, a state Supreme Court justice denied the motion.
Varble explained that if Mid Hudson had attempted to sell its assets to
Mount Kisco without telling them that they were facing lawsuits for medical
malpractice, the transfer could be considered fraudulent, raising even
more concerns and issues. He speculates that this is not the case, as
there has been much scrutiny of the medical group since the news on the
scandal broke out.
Though it seems like a risky business deal, Attorney Varble noted that
"They must be getting a good deal." He further commented that
"If Mount Kisco's attorneys are competent, which I'm sure
they are, I assume they would have calculated all of that into the…negotiations."
To read the Poughkeepsie Journal's full story about this case,