Clinics tied to hepatitis outbreak seek bankruptcy
Published Monday, July 20, 2009 | 4:13 p.m.
Updated Monday, July 20, 2009 | 6:40 p.m.
Sun Coverage
Companies at the center of Nevada's hepatitis scare filed for Chapter 7 bankruptcy liquidation Friday, potentially affecting the recovery of financial damages by patients at clinics operated by Dr. Dipak Desai.
Ed Bernstein, one of the lead plaintiffs' lawyers in the endoscopy litigation over unsafe practices that potentially exposed patients to hepatitis, said the bankruptcy filing could cause delays in the massive case.
"This is a continuing pattern of the endoscopy center to prolong and conceal information from the parties who were injured to keep them from getting their day in court," Bernstein said.
The action automatically stays all matters in the litigation relating to the three clinics that filed for bankruptcy protection, plaintiffs' lawyers said.
The lawyers said they would seek to lift the stay in Bankruptcy Court.
Will Kemp, another lead plaintiffs lawyer, said the case will still be able to move forward in District Court against the other defendants, including Desai, the owner of the clinics, who is named as an individual defendant.
Attorneys who filed the bankruptcies could not immediately be reached for comment.
The Endoscopy Center of Southern Nevada, the Gastroenterology Center of Nevada and the Desert Shadow Endoscopy Center made the filings in U.S. Bankruptcy Court for Nevada in Las Vegas.
The Endoscopy Center filing listed 50-99 creditors, assets of under $50,000 and estimated debt of $100,000 to $500,000.
The Gastroenterology filing listed assets of $1 million to $10 million and estimated debts of $500,000 to $1 million. It listed 100 to 199 creditors.
The Desert Shadow filing listed 50-99 creditors, assets of $100,000 to $500,000 and estimated debts of $100,000 to $500,000.
But hundreds and hundreds more potential creditors, mostly unsecured, are listed in the bankruptcy filings.
They include patients who have sued the clinics in more than 400 lawsuits. Thousands of patients charge in these suits they were infected with hepatitis or exposed to the risk of infection because of unsafe procedures at the clinics including the reuse of syringes and vials for anesthesia.
The Southern Nevada Health District late last year classified 101 cases of chronic hepatitis C infection as possibly associated with the Endoscopy Center of Southern Nevada, 700 Shadow Lane; and four cases possibly associated with the Desert Shadow Endoscopy Center, 4275 Burnham Ave.
The patients' claims against the companies are listed in the bankruptcy filings as "contingent" and "disputed."
The bankruptcy filings show the clinics had malpractice or professional liability insurance with Nevada Mutual Insurance Co., Travelers and CNA. However, the filings show the Desai companies are asserting claims of breach of contract against Nevada Mutual and Travelers -- indicating those insurers may be denying or limiting coverage for the massive malpractice claims.
The bankruptcy filings shed new light on the finances of the clinics.
The Endoscopy Center generated revenue of $6.9 million in 2007, but that fell to $1.16 million in 2008, when the businesses were closed.
The Gastroenterology filing listed revenue of $11.142 million in 2007, falling to $5.25 million in 2008.
Revenue at the Desert Shadow business of $3.6 million in 2007 fell to about $815,000 in 2008.
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why is nobody in jail yet for these crimes???
is district attorney david roger incompetent???
does he need to be replaced???
is attorney general catherine cortez masto incompetent???
does she need to be replaced???
are they incapable of protecting nevada residents from such disasters???
are they complete and total clowns???
are these docotors laughing at them???
ATTENTION: Birdiedreamin....Yes Yes Yes Yes Yes Yes Yes! did I answer all your questions? I think the Sheriff ought to be thrown in there too.
No evidence? Bullpucky!..This whole state is corrupt.
hey thumper...
quick question...
who is more pathetic...
district attorney david roger...
attorney general catherine cortez masto...
or you...
hmmm...
let's see...
no one has gone to jail yet for the horrific hepatitis epidemic...
ergo...
clearly david roger and catherine cortez masto are clowns...
and you...
well you are still trying to sell the tired old bs that obama is a muslim...
sad...
truly sad...
you poor poor terribly misguided republican fool...
so...
bottom line...
we have 2 clowns and 1 fool...
seems like a pick 'em situation to me!!!
According to the SNHD office, only a handful of people were damaged by the clinics operated by Desai. They need to compensated. However, it's common practice for undamaged people led by ambulance chasing lawyers to attempt to cash in by filing frivolous lawsuits. I hope the undamaged never collect a dime, for goodness sakes.
hey afveteran...
let em get this straight...
are you siding with those doctors???
those scum bags who infected those innocent people...
to save a few pennies...
they ruined those peoples lives to save a few pennies...
got that skippy...
and the fact that roger and cortez mastro have not put their butts in jail yet is all you need to know that they are complete and total clowns who need to be replaced...
clowns just like afveteran!!!
Geez Louise, yet another stall tactic.
C'mon already, ANYONE else would have been jailed a long time ago for attempted murder healthy or not!
Thumper go crawl back into your bomb shelter and wait for the end to come you white trash trailer park loser, unemployed and living in a garbage can of a mobile home.
You are obviously a racist bum who cannot get a job due to your lack of IQ, overpowering body odor, bad teeth and inability to read.
Do the world a favor and go jump into the Grand Canyon.
Afveteran wants to defend these scumbag greedy scam artists masquerading as doctors? I don't care if only ONE person was actually harmed you simple minded twit!
It is all about the institutionalized practices that put tens of thousands at risk so Desai could buy off more politicians and drive other legitimate doctors out of the gastroenterology business.
If Desai is not completely destroyed professionally, economically, and socially, more greedy scumbag doctors that end up in Las Vegas because no other place will take them will conduct business in this horroific manner.
This is all about deterrence. Fool!
I'm against undamaged people collecting any monetary sum, period. Just like I'm against unemployed people collecting wages for doing nothing. People in this capitalist society we live in get along by the sweat of their own brow.
Truth?!?!??! Thumper your lack of grey material between your shallow skull means you cannot apparently recognize the truth from your sister in bed with you.
You are a racist birther artard. People so lacking in mental capacity as you are a waste of tax dollars. The sooner you get sent to a re-education camp operated by Napolitano's Homeland Security jack-booted thugs the better.
At the very least they need to castrate you to protect the gene pool.
Afveteran, you are a naive child. This is not about anything but deterring future greedy azz doctor's from pulling the same crap.
And if you had the misfortune to be in any class action suit the size of this monster, you would know that the end user victims get diddly squat. So stop worrying you didn't hit the HIV or Hep C lottery with the other 'winners'.
I hope you have a wife who reads this and splains it to you with a whoop upside the head you simple bastage.
HAHA. These are companies that know how to limit their liability - Don't have any money - siphon it off to another company. Buy insurance that doesn't pay up or has a nice low lifetime limit. 400 lawsuits are filed. Nice for the court, all those filing fees. But each one of them is going to get stymied.
They should be stymied. It's a natural crime for anyone to collect if they're undamaged.
I've never met an honest Indian doctor yet, if that's where he's from. (from India thumper)