The Oregon Department of Justice has ordered FamilyCare entities to turn over certain documents as it investigates possible violation of laws related to nonprofits and charities, the Portland Business Journal reported.
The Justice Department has also disclosed an anonymous complaint accusing FamilyCare of misusing Medicaid funds. The complaint claims that FamilyCare offered large signing bonuses to some new hires in addition to salaries that surpass industry standards despite supposed losses, according to the report.
The department wants FamilyCare Inc., FamilyCare Health Plans Inc., FamilyCare Community Health Alliance and the Heatherington Foundation for Innovation and Education in Health Care to turn over copies of board meeting agendas, director correspondence, conflict-of-interest policies, compensation documents, donation logs and political contributions, among other items.
FamilyCare CEO Jeff Heatherington said the department already has those documents and denied paying signing bonuses on top of salaries, the news outlet reported.
In December, FamilyCare Health Plans announced that it was closing its operations after the Oregon Health Authority asked it to enter into a coordinated care organization contract that would have forced it into bankruptcy by June 2018.