WILLIAMSON, WV – The U.S. Department of Labor has taken legal action after an investigation by its Employee Benefits Security Administration found the former CEO of a West Virginia hospital, who was a fiduciary of the company’s healthcare plan, failed to forward contributions to the plan. This led to the plan’s cancellation and left participating employees with a significant number of unpaid claims – and without health coverage.
Filed in U.S. District Court for the Southern District of West Virginia, the department’s suit seeks to restore all losses incurred by former employees of Williamson Memorial Hospital LLC in Williamson, West Virginia, as a result of fiduciary breaches by Charles Hatfield. The rural, 76-bed hospital filed a bankruptcy petition on Oct. 21, 2019.
“Fiduciaries have a legal obligation to operate employee benefit plans solely in the interest of participants and beneficiaries,” said Employee Benefits Security Administration Acting Regional Director Cristina O’Brien in Philadelphia. “We will hold them accountable whenever they fall short of that obligation.”
The court action follows an investigation that found – from at least July 1, 2018 through Oct. 31, 2019 – Williamson Memorial Hospital offered a self-insured health plan to provide medical benefits to full-time employees and their eligible dependents. The plan was funded by employee payroll deductions and employer contributions....
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