Hospital CEO slapped with lawsuit

Cedar Park, TEXAS (KXAN) - Extortion and Racketeering are just two of the claims made against the new head of Cedar Park Regional Medical Center.

Abe Martinez has been slapped with a civil lawsuit, filed by two doctors at a Laredo hospital, where he served as CEO for the past four and half years.52 pages allege Abe Martinez and other hospital executives engaged in corrupt and unlawful racketeering for their own profit.

"Applied economic pressure made extortion demands both directly and indirectly that severely harmed our clients,” said Attorney Jason Davis.

Claiming Martinez forced Laredo Doctor Eliel Natakirutimana to pay monthly a blackmail payment of $8,500 a month for nearly three years, demanded the money in cash and threatened if he didn't, he would never work in Laredo again.

“There were demands that individual physicians pay money to executives in order to keep their contracts,” said Davis.

The lawsuit goes on to claim that Martinez - and the Community Health Services and Laredo Medical services also delayed and withheld hundreds of thousand in subsidies owed to doctors Eliel Natakirutimana and Jose Berlioz and that Berlioz was terminated when he refused to pay.

Both doctors complained - launching an internal investigation.
Martinez declined our request for an interview but released this statement:

“Upon learning of the allegations, a thorough investigation was immediately conducted. This review was as extensive as possible given that the hospital did not then have the ability to subpoena documents or witnesses and I cooperated fully with that investigation. The review was unable to substantiate any of the claims of illegal or improper conduct by the hospital or by me. Although the allegations were not substantiated, the hospital acted appropriately by promptly reporting the matter and requesting a full investigation by both state and federal authorities, and I supported this decision.”

Abe Martinez has only been the CEO of Cedar Park Medical Center since July. Although it is part of the same health care network as the Laredo facility, it is not named directly in the lawsuit.