NEWARK
— O’Grady-Peyton International
(USA) Inc., a health care service firm,
has agreed to pay $134,000 and revise
certain business practices so it complies
with State regulations and the Consumer
Fraud Act, under terms of a settlement
announced today by Attorney General Peter
C. Harvey and Consumer Affairs Director
Kimberly Ricketts.
The Attorney General and Director Ricketts
alleged that O’Grady-Peyton, which
hires nurses and other health care practitioners
for temporary positions in New Jersey
medical facilities, failed to perform
background checks and maintain required
records in connection with certain placements.
Under the terms of the settlement, the
company has agreed to verify that the
individuals it employs or places are properly
licensed and to maintain its records in
accordance with state regulations. Moreover,
the settlement requires that O’Grady-Peyton
disclose to its health care professionals
what their working conditions and living
arrangements will be in connection with
temporary placements in New Jersey.
“Companies
such as O’Grady-Peyton have an obligation
to the public to thoroughly check the
background of the health care professionals
it hires and to verify that these doctors,
nurses and other practitioners are properly
licensed,” said Acting Governor
Richard J. Codey. “This settlement
clearly states what O’Grady-Peyton
is required to do to safeguard the public.”
“New
Jersey patients deserve care from properly
trained and licensed medical professionals,”
said Attorney General Harvey. “Although
O’Grady-Peyton’s professionals
hold temporary positions, that does not
lessen the company’s responsibility
to perform background checks and maintain
records on them as required by State regulations.
The same concern exists to ensure that
patients are cared for by licensed, responsible
practitioners.”
Under terms of the settlement. O’Grady-Peyton
agreed to:
- Within
60 days, have a record for each health
care practitioner that contains all
information required under state regulations;
- Revise
its employment agreements to eliminate
provisions that require a health care
practitioner to pay liquidated damages;
- Refund
$611.75 paid in liquidated damages by
one employee;
- Not
attempt to bind a health care practitioner
to a particular lease agreement or furniture
rental agreement without the express
written consent of the health care practitioner;
- Provide
copies of a particular lease agreement
or furniture rental agreement to the
health care practitioner before requiring
the practitioner to be bound to it;
- Disclose
information about anticipated medical
coverage to the health care practitioner
prior to employment;
- Obtain
written consent from the health care
practitioner for any paycheck deductions
other than taxes and retirement savings.
“This
settlement protects health care practitioners
by setting specific disclosure requirements
prior to their hiring,” Director
Ricketts said. “We expect O’Grady-Peyton
to abide by this agreement and to adhere
to our regulations.”
Under the settlement, O’Grady-Peyton
paid $130,000 as a civil penalty and $4,000
in reimbursement for costs incurred by
Consumer Affairs.
Deputy Attorney General Brian M. Brennan
represented the State in this matter.