Cardiologist Richard Zelman has resolved lawsuit against Cape Cod Healthcare, CEO

HYANNIS — Cardiologist Richard Zelman has resolved his lawsuit against Cape Cod Hospital and its CEO alleging he was fired for blowing the whistle on practices he saw as prioritizing profit over patient care.

"The dispute between Dr. Zelman and Cape Cod Hospital/Healthcare has been resolved by those parties to their mutual satisfaction," said a spokesperson for Cape Cod Hospital in a statement Wednesday, declining further comment.

The parties filed a stipulation of dismissal on June 30, 2023 that stated: "all claims which were or could have been asserted by the parties in this action be, and hereby are, dismissed with prejudice and without costs or attorneys' fees to any party, and that all rights of appeal are waived."

Zelman did not respond to a voicemail message Thursday seeking comment. On a LinkedIn page, Zelman is listed as working for Zelman Cardiology in Hyannis since September 2022.

Zelman's lawsuit was originally filed on Dec. 6, 2022 in Barnstable Superior Court, before it was voluntarily dismissed without prejudice on Jan. 25, 2023 and refiled in Suffolk Superior Court on Feb. 3, 2023.

Cape Cod Hospital, Cape Cod Healthcare, and CEO Michael Lauf were listed as defendants.

Lauf could not be reached for comment through a spokesperson. His attorney, Liam T. O'Connell, said Thursday that the "dispute between Dr. Zelman and Cape Cod Hospital/Healthcare and Michael Lauf was resolved by those parties to their mutual satisfaction.”

What did the lawsuit allege?

The suit alleged that in 2019 Lauf wanted to limit the use of a medical device to patients whose insurance reimbursed the hospital at higher rates than Medicare and Medicaid, and that Zelman faced retaliation for reporting "grievously dangerous" care by the hospital's cardiac surgeons — employed by Brigham and Women’s Hospital — including what the lawsuit terms "sham investigations."

Zelman is an interventional cardiologist who joined the medical staff at Cape Cod Hospital in 1990. He was hired full time in 2006 and became the medical director of the hospital’s Heart and Vascular Institute in 2018. He said he was terminated from the hospital on Sept. 30, 2022.

The hospital no longer has a contract with Brigham and Women's Hospital in Boston, which had partnered with Cape Cod Hospital’s open-heart program since its inception in 2002. The hospital has been affiliated with Beth Israel Lahey Health since 2022.

In a 2023 interview with the Times, Lauf emphatically denied the allegations, saying he and the hospital looked forward to their day in court.

Cape Cod Healthcare, based in Hyannis, operates two acute care hospitals, Cape Cod Hospital and Falmouth Hospital, along with a homecare and hospice agency, a skilled nursing and rehabilitation facility, an assisted living facility and a number of health programs.

Zane Razzaq writes about housing and real estate. Reach her at [email protected]. Follow her on Twitter @zanerazz.

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This article originally appeared on Cape Cod Times: Cape Cod Hospital, cardiologist settle suit to 'mutual satisfaction'