Former Morton Hospital CFO Files Human Rights Complaint, Says He Was Fired for Being Gay

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The man who was briefly the chief financial officer of Morton General Hospital last year has retained an attorney and filed a complaint against the hospital, arguing he was fired because he’s gay.

Chehalis resident Eric Carlson filed a discrimination complaint against the hospital with the Washington State Human Rights Commission and the U.S. Equal Employment Opportunity Commission (EEOC). He was hired by former Morton General CEO Seth Whitmer on Nov. 24, 2014. Carlson was fired and walked out of the building on Jan. 5.

“This is larger than me. This is about a board of commissioners that is acting outside of the law and it has affected my life, the lives of others and if left unchecked it’ll affect the lives of future employees at the hospital,” Carlson said. “After my termination I learned the real reason behind the termination, which was my sexual orientation. That’s why I have decided to take this course of action and, in 2015, it’s not right.”

Members of the hospital’s board of commissioners have previously refused to comment on Carlson’s firing, citing privacy concerns.

In his letter to the EEOC, Carlson said, “In the beginning, I was heavily praised for my improvements to the hospital … However, as word circulated around the workplace of my homosexuality, the conditions quickly began to deteriorate.”

Carlson holds a degree in international business and describes himself as a medical billing code expert. He says he has acted as a financial consultant for more than 100 companies nationwide.

According to the Human Rights Commission’s website, after a complaint is filed, the Commission’s investigators act as neutral fact-finders. They gather facts about the situation and then determine whether there is cause to believe there was discrimination. They will send a written notice to the alleged discriminators. Investigators will then interview them to determine if there’s enough reason and evidence to investigate the complaint further, which could include interviewing more witnesses or conducting site visits.

“Settlement is often a quicker and more satisfactory way to resolve the complaint,” the website says.

At the end of the investigation, the Commission will issue a finding of cause or no reasonable cause to believe discrimination occurred. If they find reasonable cause to believe discrimination occurred, they seek ways to resolve the issue, which may include back pay, reinstatement, rent refunds or training to eliminate the unfair practice. If that process fails, the complaint could be turned over to the Attorney General's office.

The letter goes on to claim that Carlson reworked the hospital’s billing systems, which saved it $2.4 million and about 18 jobs. It also claims he found $800,000 worth of revenue in the form of improper billing. But shortly after his sexuality was uncovered, he said, his coworkers, including Whitmer, began to distance themselves from him.

At the end of December, Carlson was questioned by the hospital administration over past allegations of fraud.

According to court documents, just before the global financial crisis of 2008, Carlson was in the business of recruiting international students to American colleges. He was loaned $300,000 from an account shared by a wealthy elderly woman and a former lover of Carlson’s. The business failed and Carlson was sued for the money in May 2010. He avoided paying the debt through filing for bankruptcy. The bankruptcy was disputed by the former lover who alleged Carlson had defrauded the elderly woman.

The suit made it up to the Ninth Circuit, U.S. Bankruptcy Appellate Panel.

The court documents say, “Despite finding (Carlson) had made misrepresentations, the bankruptcy court found that Taylor ultimately failed to prove he relied on these misrepresentations in making the loan, much less that his reliance was justifiable.”

The decision was reaffirmed by the Ninth Circuit and Carlson’s debt remained discharged. He was never charged with fraud.

Still, the hospital board and Chief of Human Relations Officer Shannon Kelly pushed for Carlson’s termination. He was fired by Whitmer in early January.

“I’d say it’s my duty to see this through and to hold the board accountable for their discriminatory actions,” Carlson said. “I don’t blame Seth professionally for what happened because he was acting under the direct threat and orders of the board.”

Whitmer himself lasted only a few months longer and was fired in early March. He is currently seeking a settlement with the hospital over claims that he was fired for religious discrimination.

A demand letter sent to the hospital administration by Whitmer’s attorney says, “Mr. Whitmer, under significant pressure and the threat of losing his own job, terminated Eric Carlson. Ms. Kelly applauded the move, explaining that ‘everyone had concerns’ about Mr. Carlson’s sexual orientation. The (Board) agreed, preaching the sentiment, ‘What were we supposed to do, keep a man like that on staff?”’