MediSys begins internal review after bribery scandal

Jamaica Hospital's board has hired Zachary Carter (inset) to review the company's policies following the indictment of its former president. Inset photo courtesy Dorsey & Whitney LLP
By Ivan Pereira

Jamaica Hospital’s parent company has hired a former U.S. attorney to review its policies and make some adaptations to protocol in the wake of a federal corruption investigation and administration changes, the company announced Tuesday.

Zachary Carter, the former U.S. attorney for the Eastern District of New York, has been retained to evaluate MediSys’ compliance policies, procedures and protocols to “ensure the overall integrity of its business operations,” MediSys’ board said. Three weeks ago, former MediSys President and CEO David Rosen was indicted by Manhattan U.S. Attorney Preet Bharara and accused of paying bribes to state legislators in exchange for favorable actions on their behalf in Albany.

Rosen was fired by the board and replaced by Bruce Flanz days after the indictment. The state Department of Health is also investigating the MediSys board’s of monitoring Rosen’s alleged actions and why it did not remove him earlier.

Neil Philips, the board chairman of MediSys, which runs Jamaica, Flushing and Peninsula hospitals, said the evaluation by Carter will be comprehensive.

“The review by Mr. Carter will be invaluable in demonstrating to all of our stakeholders, including the communities we serve, regulators and other public officials, MediSys’ commitment to the highest ethical standards at all levels of our organization,” he said in a statement.

Carter will use the findings of the review to develop new policies and protocols for MediSys and “monitor compliance with these integrity measures,” the board said.

He served as the U.S. attorney for the Eastern District from 1993-96 and now heads the New York office of Trial Group of Dorseey & Whitney LLP.

In addition to his legal services, Carter also wears many hats for different sectors.

He is chairman of the mayor’s Committee on the Judiciary and a member of several board of directors, including Cablevision, New York University Law School and the Harlem nonprofit Hale House, where he is the chairman.

Rosen allegedly paid more than $390,000 to the late state Assemblyman Anthony Seminario, who pleaded guilty to corruption charges last year and died in prison in January, and gave thousands more to Democratic Brooklyn legislators state Sen. Karl Kruger and Assemblyman Thomas Boyland Jr., according to federal prosecutors.

Both elected officials were indicted on corruption charges.

Reach reporter Ivan Pereira by e-mail at ipereira@cnglocal.com or by phone at 718-260-4546.

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