Healthcare Business News

$123 million trust part of Beebe sex abuse settlement

By Ashok Selvam
Posted: October 10, 2012 - 6:00 pm ET

Beebe Medical Center, Lewes, Del., avoided bankruptcy when 17 months of mediation led to the proposed establishment of a $123.2 million trust for victims sexually abused by a staff pediatrician, according to a news release (PDF).

Authorities arrested Dr. Earl Bradley in December 2009, and he faced charges of sexually abusing young patients from 1998 to 2009. The trust is made up of insurance proceeds and a contribution of cash and future treatments for victims from Beebe. Retired Delaware Supreme Court Judge Joseph Walsh served as the mediator. Under the proposed settlement's terms, all claims versus the Medical Society of Delaware and its Physicians' Health Committee would be resolved without any admission or finding of liability. The medical society's insurance carriers have agreed to contribute money toward the fund.

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A court hearing is scheduled for Nov. 13 to review the fairness of the settlement. The court convicted Bradley last year, and he's serving 14 lifetime prison sentences. In 2010, Standard & Poor's downgraded Beebe's rating and said liability lawsuits could force the hospital into bankruptcy.

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