Health & Medicine

Former employee awarded $2.4 million in lawsuit against Eastern Kentucky hospital

A Floyd County woman has been awarded $2.4 million after suing her former employer, the Highlands ARH Regional Medical Center.
A Floyd County woman has been awarded $2.4 million after suing her former employer, the Highlands ARH Regional Medical Center. Getty Images

A jury has awarded a former Eastern Kentucky hospital employee $2.4 million in damages after she alleged that medical center administrators directed her to convince patients to have themselves discharged if they didn’t have resources to pay for treatment.

Ashley Shepherd, a behavioral therapist, sued the Highlands ARH Regional Medical Center in Prestonsburg for wrongful termination in Floyd County Circuit Court, and was ultimately awarded $2.4 million in damages. A jury found that the hospital’s actions forced Shepherd to quit and caused her pain and suffering.

Shepherd’s attorney, Jerry Patton, said his client was deserving of the verdict handed down last week.

“Justice was served and we are grateful to the jury for recognizing that my client was in the right and had been treated badly at work by the defendant,” Patton said. “We are happy with the jury’s decision.”

The Highlands ARH Regional Medical Center didn’t immediately respond to a request for comment.

Shepherd worked as a behavioral therapist for the hospital, according to court documents. She stated in the original complaint filed that she was directed by the hospital administration, through her supervisor, to convince patients to be discharged when they no longer had the resources to pay or insurance would no longer pay for their treatment.

Typically, this was an average of three days, the complaint stated. Many times, the patient would tell Shepherd in response they were still suicidal, actively psychotic, or homicidal. Despite this, Shepherd said in her lawsuit that she was told by her supervisor and the administration it was costing the hospital more money to house the patient and they needed to be discharged.

Shepherd was directed by her supervisor to convince the patients they were not suicidal, psychotic or homicidal, according to court documents. She refused and reported in her notes the patient still required hospitalization, according to court records.

Because of this, Shepherd said she suffered retaliation for not following the administration’s instructions, according to court records. Shepherd alleged she did not receive a promotion she was qualified for due to her actions. In addition, her charts were audited repeatedly, which was not standard protocol.

The jury found that the hospital’s actions toward the plaintiff forced her to quit, which she did on April 1, 2020. They unanimously agreed the actions of the hospital created a hostile work environment for Shepherd, who suffered mental and emotional distress as a result. They awarded her $400,000 in damages for pain and suffering.

Shepherd was awarded an additional $2 million in punitive damages when the jury voted that the hospital and administration acted towards her with fraud, oppression and malice.

This story was originally published September 6, 2022 at 1:25 PM.

Taylor Six
Lexington Herald-Leader
Taylor Six is the criminal justice reporter at the Herald-Leader. She was born and raised in Lexington attending Lafayette High School. She graduated from Eastern Kentucky University in 2018 with a degree in journalism. She previously worked as the government reporter for the Richmond Register.
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