Endeavor Health spending up to $453M to settle sexual abuse claims

Endeavor Health is spending up to $453 million to settle patients’ claims alleging one of its former doctors sexually abused them, the Chicago-area hospital system disclosed in its latest financial statement Monday.
The financial statement did not name the doctor. But Endeavor and Swedish Hospital are currently facing 61 lawsuits brought by former patients of gynecologist-obstetrician Dr. Fabio Ortega, accusing him of sexually abusing them while he worked at NorthShore University HealthSystem, which is now Endeavor. Settlements in principle have already been reached in those lawsuits. Ortega also formerly worked at Swedish, which is now part of Endeavor.
The former patients have accused Ortega of sexual assault or abuse during routine gynecological appointments, contending he groped them, conducted unnecessary or inappropriate vaginal exams or asked inappropriate questions. Ortega was charged criminally in Cook County and pleaded guilty to felony criminal sexual abuse of two patients in 2021.
In their lawsuits, some patients also contended that the hospital systems where Ortega worked failed to protect them from the abuse despite fielding complaints from other patients. A Chicago Tribune investigation published earlier this year described how Endeavor allowed Ortega to continue providing care despite multiple complaints from patients.
“Endeavor finally listened to the female patients and understood that they needed to resolve these cases,” said Tamara Holder, an attorney who has filed the largest number of cases against Endeavor or Swedish related to Ortega. “Women have to fight to be heard, fight to be believed, fight to be compensated and fight for institutional and legislative change. I’m proud that we were able to do that.”
A representative for Endeavor said Monday that the system is “unable to provide comment on a pending legal matter.”
Endeavor’s unaudited financial statement recorded a charge of $453,544,000 on legal settlement costs during the three months that ended Sept. 30.
“This amount reflects the estimated costs, expenses and settlement of claims by individuals who alleged a physician previously affiliated with certain System entities sexually abused them years ago,” according to the financial statement. Endeavor would not confirm whether the entire settlement amount was related to sexual abuse allegations involving Ortega. It is not clear if this settlement cost covers all remaining Ortega-related expenses.
Endeavor is one of the largest health systems in the Chicago area, with nine hospitals, including several in affluent northern and western suburbs. It had $5.6 billion in revenue in 2023. The system reported an operating loss of $462 million, including the $453 in settlement costs, for the three months that ended Sept. 30.
The largest group of former patients that the hospital system reached settlement in principle agreements with are represented by co-counsels Holder and Johanna Raimond, and Stephan Blandin of Romanucci & Blandin. Attorneys for Stinar Gould Grieco and Hensley, who represent 22 patients with pending lawsuits, did not respond to requests for comment Monday afternoon.
Endeavor had previously settled at least 21 cases involving Ortega and allegations of sexual abuse or assault.
Ortega was sentenced to serve three years in the Illinois Department of Corrections, is now a registered sex offender, and can no longer practice medicine. Attempts to reach Ortega and his attorney for comment were not immediately successful Monday afternoon.
Following the Tribune’s investigation, Gov. JB Pritzker signed a bill into law requiring more health care facilities to report allegations of patient abuse to the state. The new law requires doctors’ offices and clinics affiliated with hospitals to report allegations of patient abuse to the Illinois Department of Public Health, triggering an investigation by the state. Under previous law, hospitals only had to report allegations that occurred at hospitals. Many of the complaints against Ortega involved alleged incidents that happened at Endeavor-affiliated doctors’ offices — outside hospital walls.
Other organizations that recently faced patient sexual abuse scandals have also paid millions in settlements to abuse victims. Columbia University and its Irving Medical Center last year announced a plan to establish a $100 million survivors’ settlement fund following allegations from hundreds of women accusing gynecologist Robert Hadden of abuse. The University of Michigan reached a $490 million settlement in 2022 with more than 1,000 people who contended in lawsuits that they were abused by Dr. Robert Anderson. And following allegations of abuse by Dr. Larry Nassar, Michigan State University reached a $500 million settlement with survivors.