Former surgeon accuses OrthoArkansas of overcharging

A former OrthoArkansas spine surgeon has accused the Little Rock-based orthopedic provider of overcharging its patients.

Dr. Wayne L. Bruffett, who left the practice in June 2023, alleged in a lawsuit filed in Pulaski County District Court that OrthoArkansas retaliated against him and created a “hostile environment in which it was impossible for him to continue practicing.”

The allegations detailing the overbilling were redacted in the amended complaint filed in December.

OrthoArkansas denied the allegations in its court filings and denied that it knowingly overcharged its patients. It moved to dismiss the lawsuit.

The firm also filed a countersuit against Bruffett, alleging breach of contract. OrthoArkansas said Bruffett owes it $327,450. As one of about two dozen shareholders, Bruffett was required to contribute to the practice's overhead costs, but he failed to do so in the six months before he left, the firm said. He also allegedly used an OrthoArkansas credit card to pay $10,000 to Little Rock law firm James House Swann & Downing, which is suing the firm. Bruffett denied those allegations.

Bruffett began working at OrthoArkansas in 2019 and joined the board of directors in January 2022. The practice has nine locations, two outpatient surgery centers and two urgent care clinics in Arkansas.

During his time on the board, Bruffett also served on the reimbursement committee, where he discovered the alleged overpayments. He questioned other doctors in other practices about how they were handling the overpayments in their practices. One doctor said the overpayments should be reimbursed immediately.

The Centers for Medicare & Medicaid Services, the agency that administers Medicare, requires reimbursement of overpayments within 60 days.

Bruffett said in his filing that he continues to investigate the practice's responsibility to repay overpayments.

“OA subsequently used Dr. Bruffett's duty of care as a pretext to constructively discharge him,” the lawsuit states. A constructive discharge occurs when an employee resigns after the employer has created intolerable working conditions.

“In this case, Dr. Bruffett faced numerous stressful working conditions: hostility at board meetings and in the workplace,” his filing states.

In its response, OrthoArkansas said its shareholders agreed with Bruffett that the refunds should be made as soon as possible. OrthoArkansas said that “patients are billed based on estimates, overpayments and subsequent refunds are standard in physician practices.” It said the processing of the refunds would be completed in May 2023, but by that time Bruffett had already announced he would be leaving the practice.

On July 1, 2023, Bruffett joined the University of Arkansas for Medical Sciences School of Medicine, where he serves as an assistant professor in the Department of Orthopaedics.

He said his base salary at UAMS is about 50% lower than his salary at OrthoArkansas. UAMS paid Bruffett $1.24 million for the fiscal year ended June 30.

Bruffett's charges include breach of contract and wrongful termination of service.

OrthoArkansas stated in its filings that Bruffett “voluntarily resigned.” “By characterizing his voluntary resignation as a wrongful termination, Dr. Bruffett hopes to avoid his contractual obligations,” the filing states. OA is represented by Quattlebaum Grooms & Tull of Little Rock.

A seven-day jury trial is scheduled to begin on July 25 in District Judge Tim Fox's courtroom.