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Mike Fogarty
OklahomaHealth Care Authority chief executive officer
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A federal jury sides with health care providers who said state health officials retaliated against them.
OKLAHOMA CITY -- A federal jury awarded slightly more than $16 million in damages Friday to the plaintiffs in a lawsuit against Oklahoma Health Care Authority Chief Executive Officer Mike Fogarty; the agency's Behavioral Health Services director, Terrie Fritz; and Dana Brown, the agency's former legislative liaison.
The verdict marked the second time a federal jury has sided with a group of private behavioral health-care providers who say the three retaliated against them for exercising their free-speech rights.
"No judgment has been entered at this point," said Andy Lester, a lawyer for Fogarty. "We are certainly going to explore post-trial motions and if necessary our options on appeal. We are disappointed."
His fees and those of lawyers representing the other two defendants are being paid by the state.
Exactly who will pay which part of the actual and punitive damages awarded was not immediately clear. The three were sued as individuals, but insurance might cover some of the damages.
The rural providers went to court in 2003 and won a $34.4 million judgment, a figure that was later reduced by U.S. District Judge Joe Heaton. Citing insufficient evidence for the verdict, Heaton ultimately threw out the award and ordered a new trial.
The providers had sued Oklahoma Health Care Authority officials who oversee the state Medicaid program. They alleged that Medicaid reimbursements were cut from them after they spoke out about how the agency operated.
The case went back to court earlier this month. Plaintiffs' lawyer Steve Holden of Tulsa called it a case of the people against big government.
"This verdict will determine whether we run the government or the government runs us," he said in closing arguments Thursday.
Holden said Friday that he expects more appeals from the defendants, adding that they will put up paperwork and roadblocks.
"The fight is not near over," he said.
Plaintiff Nancy Thrift of Red Oak said the verdict means that her clients might get the care they really need.
Nancy and Neal Thrift run Rustling Winds in McAlester, Wilburton and Poteau.
John Majors of Weleetka said the verdict "sent a message to big government, but the impact remains to be seen. To our clients, it is a glimmer of hope."
John and Cindy Majors run Morning Star Mental Health in Henryetta, but they had to close three other locations.
Milton Evans of Kingston said he hopes that the verdict means that he and his clients won't be in fear of closure or interrupted services as a result of tactics previously employed by the Health Care Authority.
Evans runs Southeast Oklahoma Family Services in Hugo, Atoka, Tishomingo, Madill and Wilson.
The case "exposed real problems with government," a Tulsa lawyer who represented the plaintiffs. "We hope to see Mike Fogarty and Terrie Fritz removed. They are in no position to handle taxpayer money."
Nico Gomez, an agency spokesman, would not comment.
Barbara Hoberock (405) 528-2465
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