21st Century Oncology CEO, CFO step down

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FORT MYERS, Fla. A prominent cancer treatment center that’s made headlines for multimillion-dollar settlements, class-action lawsuits and financial woes is changing leadership for the second time in six months.

Fort Myers-based 21st Century Oncology CEO Bill Spalding has stepped down and has been replaced on an interim basis by Paul Rundell, a managing director of Alvarez & Marsal Healthcare Industry Group in Chicago, according to a press release. Spalding will remain with the firm as a board member.

“21C’s mission is and always has been to provide the highest level of patient care,” Rundell said in a statement. “I look forward to working with our doctors and other stakeholders to fulfill that mission.”

Alvarez & Marsal touts itself as a consulting business that helps medical firms “tackle their toughest business and operational challenges.” A&M began working with 21st Century Oncology in January, the release said.

Another A&M executive, Doug Staut, will take over as 21st Century’s chief financial officer in place of LeAnne Stewart, who has also stepped down, according to the release.

21st Century defaulted on a $25 million interest payment due Nov. 1. That came shortly after Spalding replaced former CEO Dr. Daniel Dosoretz, one of the company founders.

Doctors with 21st Century are accused of billing Medicare and Tricare for expensive and unnecessary bladder cancer tests that could total over $30,000 in reimbursements per case. A 2013 whistleblower suit, filed by employment attorney Ben Yormak, alleged the tests were rarely effective.

The doctors received bonuses based on the number of referred tests, federal prosecutors said.

Four Southwest Florida doctors were involved in the practice, including one who ordered more than 13,000 tests since 2009, prosecutors said. Three of the doctors settled with prosecutors for more than $5 million.

The company is currently facing at least five class-action lawsuits.

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