London, Ont., hospital accuses former CEO of failing to act on evidence of alleged $50-million contract fraud

One of Ontario’s largest hospital corporations is taking the unusual step of suing its former chief executive and two senior administrators, alleging they failed to act properly when they were presented with evidence of a procurement fraud.

London Health Sciences Centre, which manages three hospitals and more than 15,000 employees, announced two lawsuits this week stemming from an investigation into an alleged $50-million fraud scheme. The hospital network alleges inflated contracts were steered to companies with ties to a former vice-president of London Health Sciences.