Allegiance Disputed Dumas Hospital Deal

Allegiance Disputed Dumas Hospital Deal
Delta Memorial Hospital in Dumas

In addition to more recent disputes, Allegiance Health Management Inc. of Shreveport also ended up in litigation over the management contract for Delta Memorial Hospital in Dumas.

(See: Allegiance Health Faces Lawsuits, Tax Liens)

Craig Ortego, owner of Quality Health Management Inc. of Lafayette, Louisiana, had experience operating rural hospitals and began working with Allegiance CEO Rock Bordelon around 2004. Ortego was responsible for bringing several hospitals to Allegiance, including Five Rivers Medical Center at Pocahontas.

That business arrangement with Ortego soured in 2009 when Allegiance accused Ortego of fraud in a lawsuit filed in Pulaski County Circuit Court.

Allegiance said it had received a lead in 2008 that Delta Memorial Hospital in Dumas was interested in contracting with a hospital management firm. Ortego offered to investigate the lead. He reported that Delta was only interested in limited services and he ended up taking the job.

Allegiance said it later learned that Ortego had signed a general management contract to operate Delta. Allegiance sued but asked that the case against Ortego be dismissed less than six months after it was filed.

“I really cannot speak about that,” Ortego, who hasn’t worked with Delta Memorial for several years, told Arkansas Business. “I’m sorry … but there’s a lot of reasons why, but I just cannot speak about the company.”