Four new lawsuits have been filed during the past six months on behalf of patients who claim they were harmed by unnecessary surgeries performed by former Providence St. Mary Medical Center neurosurgeons.

April 2025 marks three years since Providence Health & Services' settlement with the U.S. Attorney's Office for the Eastern District of Washington. Providence agreed to pay $22.7 million to resolve allegations that it fraudulently billed insurance programs such as Medicare and Medicaid for unnecessary operations performed by the two surgeons - Drs. Jason Dreyer and Daniel Elskens.

February 2025 lawsuit

Multi-plaintiff lawsuit filed Wednesday, Feb. 19, in Walla Walla County Superior Court.

After Providence's agreement to pay the largest health care settlement in the history of Eastern Washington, a slew of patients who claim they were harmed by the surgeries came forward, many of whom are now represented by Spokane attorney Bill Gilbert in several lawsuits.

More than 100 plaintiffs are listed in the most recent lawsuits, including one complaint that is solely made up of people 70 years old and older. Gilbert said that because of their advanced age, he has put them all into the same lawsuit in hopes of getting an expedited path to trial.

"The purpose of this is to force them (Providence) to do the right thing," Gilbert said. "They've refused to do the right thing from the very beginning, and that is to take care of their patients."

While Providence St. Mary Medical Center spokesperson Emily Volland declined to comment about specifics in the lawsuits, she said quality of care and safety are the hospital's top priorities.

"We have strong protocols and safeguards to ensure we deliver quality care and make continuous improvements that further enhance those protocols and safeguards," Volland said.

The doctors who performed the surgeries, Dreyer and Elskens, worked for Providence St. Mary between 2013 and 2018. They were both allowed to leave their positions without being reported to the National Practitioners Data Bank. Reporting them to the data bank could have hindered both doctors' ability to be hired in the future.

The two most recent lawsuits were filed on Tuesday, March 11, against the Providence system. They list Dreyer and Elskens as defendants.

The doctors

According to the lawsuits, when Dreyer and Elskens worked at Providence, the hospital paid its neurosurgeons using a method called work Relative Value Unit, or wRVU, which is an incentive-based performance metric.

Jason Dreyer

Dreyer

The higher volume and higher complexity of surgeries performed means higher income for individual surgeons and higher reimbursement claims with health insurers.

"Upon information and belief, by the end of 2014, Dr. Dreyer's volume practice counted for nearly 35% of the overall profit margin at St. Mary Medical Center," according to one of the lawsuits filed March 11. "Although it should have, this did not raise concerns with compliance and risk oversight managers with Providence, according to currently available records."

Dreyer also entered into a consulting agreement with Medtronic, the largest manufacturer of medical equipment, in what the lawsuit calls a "sweetheart arrangement" where the company would inform Dreyer of opportunities to increase his wRVU numbers.

Each lawsuit states that Dreyer became one of the highest paid neurosurgeons in the entire 51-hospital Providence system, earning between $2.5 million and $2.9 million per year.

Meanwhile, Elskens was placed in administrative leave and resigned in 2017 amid allegations of performing unnecessary or excessive surgeries.

The lawsuits say Providence told Elskens that if he did not seek recovery of his unpaid wRVU, he would not be reported to the National Practitioner's Data Bank for patient misconduct.

Dr. Daniel Elskens

Elskens

Elskens was not reported to the National Practitioner's Data Bank.

Dreyer was placed on administrative leave in May 2018, also for allegations of performing unnecessary or excessive surgeries, and submitted his resignation that November.

Both surgeons secured jobs at other medical institutions - Dreyer at MultiCare Rockwood Clinic in Spokane and Elskens at Firelands Regional Medical Center in Sandusky, Ohio.

"Surgeries conducted on hundreds of patients by rogue neurosurgeons incentivized by Providence who together put their own profit ahead of patient safety and their own ethical responsibilities including, without limitation, a scheme to conceal their actions, resulting in Dr. Dreyer's wrongful hiring at MultiCare," one of the March 11 lawsuits states.

The health department placed restrictions on Dreyer's medical license which led to his firing at MultiCare Rockwood Clinic in 2021.

Documents from the state health department show that Dreyer signed a Stipulation to Informal Disposition in November 2023, agreeing to surrender his credentials to practice as an osteopathic physician and surgeon and to never again practice as an osteopathic physician and surgeon in the state of Washington.

Meanwhile, Elskens signed a Stipulation to Informal Disposition in 2020, agreeing to several terms including participation in a continuing medical education course and obeying all federal, state and local laws for practicing physicians.

March 2025 lawsuit #1

Multi-plaintiff lawsuit filed Tuesday, March 11, in the U.S. District Court for the Eastern District of Washington.

These documents are available on the state Department of Health's website at fortress.wa.gov/doh/providersearch.

The health department informed Elskens in January 2023 that he was formally released from the terms of the stipulation because he had "demonstrated satisfactory compliance with the terms and conditions of the agreement."

While working at Firelands Regional Medical Center, Elskens was served with a wrongful death suit filed against him by a patient's family. In March of this year, the jury ruled in Elskens' favor.

Elskens no longer works for Firelands Regional. The Sandusky Register reported in June 2022 that he was planning to leave Ohio and move back to Michigan, his home state. It is unclear where he is practicing now, although there is a neurosurgeon named Daniel Elskens listed on MediFind.com who is practicing in Grosse Pointe, Michigan, and is currently accepting new patients.

"Had Providence reported Dr. Elskens to the NPDB (National Practitioner's Data Bank), he likely would not have obtained gainful employment, and those patients would not have suffered as a result of his incompetence and broken moral compass," one of the March 11 lawsuits states. "This same scenario later plays out with Providence and Dr. Dreyer."

Timeline

This timeline highlights several points in the history of Providence, Dr. Dreyer, Dr. Elskens and the lawsuits that their actions brought on. This timeline is not all-encompassing and does not include several lawsuits filed and settled involving MultiCare in Spokane.

The lawsuits

Spokane attorney Bill Gilbert's office has filed one class action lawsuit and four multi-plaintiff cases since Providence's 2022 settlement agreement. The multi-plaintiff cases were all filed within the past six months.

The first of the multi-plaintiff cases was filed in December 2024 and involved four plaintiffs who were all treated at Providence St. Mary.

The first this year, filed on Wednesday, Feb. 19, is made up of 15 patients who are older than 70.

The lawsuit, filed in Walla Walla County Superior Court, requests an expedited schedule through RCW 4.44.025, a statute that says the court can give priority to cases where a party is older than 70, has a terminal illness or has another good cause for an expedited trial.

The complaint states that patients were left "emotionally and physically damaged, disfigured, in a persistent state of pain or discomfort, suffering from anxiety, depression, and living in fear that they cannot ever again trust a doctor to take care of them …"

"Providence's legal team and Providence are stalling out these cases, dragging them out," Gilbert said. "So for example, we filed that class action in 2022, and we still haven't gotten certification. And what's happened is in the older population … we've had six pass away since this started, and they need closure."

William Gilbert

Gilbert

Gilbert said in March that he was going to try to get the case to trial within six months.

Both of the other two cases from this year were filed on Tuesday, March 11. One was filed in Walla Walla County Superior Court while the other was filed in Spokane in the U.S. District Court for the Eastern District of Washington.

The lawsuit filed in Walla Walla County lists 100 plaintiffs. Some were patients at Providence St. Mary, and some were patients at MultiCare in Spokane, where Dreyer started working after he left Providence.

The lawsuit filed in the Eastern District lists five plaintiffs, all who were treated at Providence St. Mary.

The causes of action listed in the March lawsuits include medical negligence, lack of informed consent, corporate and vicarious negligence and criminal profiteering.

The lawsuits also list predicate acts that Providence allegedly violated. The predicate acts are connected to the Racketeer Influenced and Corrupt Organization, or RICO, Act. According to the Department of Justice, the government must prove that a defendant participated in a pattern of racketeering activity in order to be found guilty of violating the RICO Act.

The March lawsuits allege that Providence participated in money laundering, theft by deception and false health care claims.

"Each of Providence's criminal profiteering acts yielded similar results and caused similar injuries to the plaintiffs to their person, property and/or business, including damage to their physical being and their finances ...," both of the lawsuits state.

March 2025 lawsuit #2

Multi-plaintiff lawsuit filed Tuesday, March 11, in Walla Walla County Superior Court.

The patients listed in all four of the multi-plaintiff cases are putative members of the class action lawsuit from 2022, meaning that if the class action is certified as such, the plaintiffs in these lawsuits can join the class action if they choose.

None of the lawsuits list an amount in damages that plaintiffs are seeking.

"The damages are going to be individual depending on each individual clients' surgeries, the harm that it's caused, whether or not they're married - their spouses are entitled, their children are entitled if they've got children that were young and living at home," Gilbert said. "The damages are going to be different for each individual plaintiff."

While Providence St. Mary is where Dreyer and Elskens were practicing at the time of many of these surgeries, Gilbert made it clear that his firm is not suing the hospital. It is suing the hospital's owner - Providence Health & Services.

"St. Mary's is just one of many hospitals in a seven-state region that Providence owns and runs, and Providence is a multi-billion-dollar corporation," he said. "So it's Providence that we're suing and they're the ones that are responsible."

He also said there have been at least two cases brought against Providence by Portland attorney Robert Beatty-Walters on behalf of patients, one of which has been settled. There have also been several lawsuits filed against MultiCare concerning Dreyer's actions while practicing there.

"I have settled several cases with MultiCare that were the result of Dr. Dreyer continuing his penchant for performing unnecessary/excessive spine surgeries to increase his wRVU earnings," Gilbert said. "I have a class action case filed against MultiCare and the government is pursing them for fraud as well. I have other cases filed against Dreyer/MultiCare by individual patients as well."

Upcoming court hearing

A lawsuit filed in February by Spokane attorney Bill Gilbert represents 15 former Providence St. Mary patients, all over age 70. Gilbert is requesting an expedited track to trial because of the plaintiffs' advanced ages. A hearing is scheduled for Tuesday, April 22, in Walla Walla County Superior Court, regarding the firm's request for an expedited trial.

The patients

The lawsuits claim that Dreyer and Elskens' surgeries in some cases caused irreversible damage to patients. The lawsuit filed in December 2024 details several patients' stories.

Dreyer performed two surgeries on Dennis Higgins, once in 2015 and once in 2016. After visiting Dreyer for lower back pain, Dreyer scheduled lumbar fusions for parts of Higgins' spine.

"This was done without any consideration of conservative care, neurological assessment, or contemplation of comorbidities," the lawsuit states.

Dreyer's notes from that visit said he ordered a cervical MRI for Higgins because of numbness in his hands and arms. However, Higgins said he never mentioned numbness in his hands or arms to Dreyer.

After seeing results from the cervical MRI, Dreyer said Higgins' neck was in worse condition than his spine and that neck surgery was urgent.

"Neither of these surgeries were clinically indicated/necessary as performed. Both of these surgeries were excessive," the lawsuit states. "Mr. Higgins has never fully recovered from these surgeries."

December 2024 lawsuit

Multi-plaintiff lawsuit filed Wednesday, Dec. 4, 2024, in the U.S. District Court for the Eastern District of Washington.

While another surgeon at Providence performed a third operation to reconstruct the work that Dreyer had done, the lawsuit states Higgins was left permanently disabled by the first two surgeries.

"He is in some level of pain/discomfort every waking hour of every day. His life is controlled by his disability," the lawsuit states. "He lives 15 minutes from one of the best steelhead fishing rivers in the country. Prior to these surgeries, Mr. Higgins fished several times a week during the winter steelhead run. The joy of fishing that river is no more - he hasn't been able to fish the river since the surgery. He loved to hunt before the surgeries as well - that's gone, too."

Phern Sells, another patient of Dreyer, underwent surgery at age 82, although the lawsuit states she was not a good surgical candidate.

According to the lawsuit, Dreyer told Sells he could make her spine pain go away and that without surgery, she could become paralyzed.

"Ms. Sells' condition worsened. She was not 'fixed.' She was not 'better than before,'" the lawsuit states. "She was not able to return to any semblance of her pre-surgery norm. She was broken … more broken than she had been before the surgery."

Dreyer performed a second surgery to fix the problems from the first surgery, but it failed as well, the lawsuit states.

"Phern Sells walked into the hospital for that first surgery in November 2017. She hasn't walked without assistance of a walker since, and uses a wheelchair when necessary as well," the lawsuit states. "She has also been living in pain and discomfort beyond the level of her pre-surgical complaints."

William Hamby also had two surgeries performed by Dreyer in 2016 and 2017. The lawsuit states that like Sells, Hamby had several comorbidities, which meant he may not have been a good candidate for spine surgery.

Dreyer told Hamby, just as he had told Sells, that without surgery his condition could worsen and he could end up paralyzed. Both of Hamby's surgeries were later determined to be unnecessary and excessive.

"Dr. Dreyer did not 'fix' Mr. Hamby. In fact, things got worse for Mr. Hamby after this first surgery," the lawsuit states. "He was in constant pain/discomfort and had lost most of the range of motion in his neck. Following this first surgery, Mr. Hamby never again returned to work at his position with the Washington State Department of Corrections."

The lawsuit states that after the surgeries, Dreyer overprescribed narcotics to Hamby which led to a narcotic addition as well.

"The pain, combined with the addiction to pain medication and loss of sense-of-self changed Mr. Hamby's personality dramatically in the months and years to come," the lawsuit states.

Hospital update

When Providence agreed to the U.S. Attorney's settlement in 2022, it also entered into a five-year corporate integrity agreement to maintain quality-of-care and patient safety practices.

Providence St. Mary sign

Providence St. Mary Medical Center, 401 W. Poplar St., in Walla Walla.

While Providence St. Mary declined to provide details about the progress of that agreement, spokesperson Emily Volland said the hospital is upholding their end of it.

"Since entering the corporate integrity agreement that we reached with the U.S. Department of Health's Office of Inspector General (OIG), we have taken swift action to implement the terms of that agreement," Volland said.

The 56-page corporate integrity agreement states that all Providence hospitals were required to appoint a compliance officer within 90 days of the agreement, which was drawn up in March 2022.

Hospitals also must have compliance committees, develop training and education regarding the compliance program, and receive regular claims reviews and clinical quality systems reviews from outside organizations.

The agreement also requires Providence to provide annual reports to the OIG proving compliance and to maintain all documents and records relating to reimbursement from federal health care programs.

Providence faces penalties of $2,500 per day if it fails to comply with any of the stipulations. False statements or certifications to the OIG would result in a $50,000 penalty.

Zion Miller, public affairs officer for the OIG, said the OIG does not provide updates on entities' compliance with corporate integrity agreements.

"Agreements come to an end after the determined time frame," Miller said.

The agreement is effective for five years from March 2022, meaning that if Providence complies with all stipulations, it will be released in 2027.

"Our commitment to our mission remains steadfast, as does our dedication to serving the Walla Walla Valley with safe, quality, compassionate care," Volland said.

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