Oregon nursing home must face whistleblower’s retaliation claims

An Oregon nursing home must face a whistleblower retaliation lawsuit involving an admissions director who told a new administrator that her decision to deny admission to a behavioral health patient was disability discrimination.

A judge for the US District Court of Oregon ruled that the 2024 lawsuit brought by Karla Hunt could proceed, based on an Oregon whistleblower protection statute. It makes it illegal for an employer to fire, demote or otherwise retaliate against an employee “for the reason that the employee has in good faith reported information that the employee believes is evidence of a violation of a state or federal law, rule or regulation.”

Hunt worked at French Prairie Nursing & Rehabilitation for 17 years before Volare Health acquired it in early 2023. That July, Hunt screened a potential patient at a nearby hospital, where staff told her that his diagnosed mental health condition was under control and that he had used marijuana in the past, but not while a patient.

She recommended admission to French Prairie, where the director of nursing agreed — but an interim administrator did not. The administrator refused to admit the patient, eventually telling Hunt, according to court documents, that he was “‘not the kind of patient we are looking for’ due to his age and mental health diagnosis.” 

She asked the administrator to reconsider, arguing that declining an admission based on a “non-presenting mental health diagnosis violated the FHA [Fair Housing Act] and constituted disability discrimination.”

Three weeks later, Hunt received her first-ever written discipline warning from her manager at French Prairie, accusing her of “overstepping,” undermining management and “causing a hostile work environment.”

When the hospital asked her again to admit the same patient, she said she was fearful to further advocate for him because it would result in further disciplinary action.

Hunt was fired four days later.

While the court agreed to dismiss Hunt’s claims under the Fair Housing Act because the claims don’t align with the law, it agreed to allow her to proceed under the Oregon whistleblower law.

While Hunt hasn’t documented that her firing was related to her discrimination allegations, the court cited case law that determines that timing alone is sufficient to show cause when “an adverse employment action follows on the heels of protected activity.”

Kentucky-based Volare did not respond to McKnight’s Long-Term Care News’ request for comment by deadline Wednesday, but in its February motion to dismiss, it denied “any and all allegations of disability discrimination.”

Hunt is seeking back pay and damages in the case.