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Tufts hospital seeking $11.2M from Lifespan

The Boston Globe, June 13, 2011

Tufts Medical Center is seeking to collect an $11.2 million payment after a federal court ruled its former Rhode Island parent company, Lifespan, engaged in misconduct while investing the hospital's fees and was negligent in negotiating on its behalf with health insurers. Among other findings, Judge Joseph Laplante, in US District Court in Concord, N.H., said that Lifespan put money from the Boston teaching hospital — then known as Tufts-New England Medical Center — into a risky financial product known as an interest rate swap while not disclosing that Lifespan's former chief financial officer had a close personal relationship with the Morgan Stanley derivatives broker he hired to handle the transaction.