November 14, 2024
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Ex-administrator to settle Lubec Regional Medical Center lawsuit

BANGOR – Kenneth Schmidt of Bangor, an administrator credited with pioneering Maine telemedicine, has agreed to a settlement with the Regional Medical Center of Lubec where he worked for 21 years before leaving in a cloud of controversy this spring.

The Lubec medical center, which employs about 170 people, had sued Schmidt, accusing him of trying to take the telemedicine program with him when he left around April 4. Schmidt apparently wanted to boost the start of his own company, called Access Development Inc., and used medical center employees and resources to do it, according to the lawsuit.

Schmidt denied the allegations and said he did not intend to hurt RMCL. He suspended his work with Access Development “to comply with RMCL’s concerns,” Schmidt said in an earlier interview. Efforts Thursday to reach Schmidt’s attorney, Terence Harrigan, were unsuccessful.

The settlement agreement was filed May 29 at Penobscot County Superior Court. Signed by Superior Court Justice Jeffrey Hjelm, the document orders Schmidt and his affiliates to cease working with any of RMCL’s programs and partners for one year. These include interactive telecommunications programs statewide, substance-abuse programs, HIV clinics and other medical interactive programs.

The settlement requires Schmidt and his affiliates to “not solicit or engage directly the services of … or associate with any people who were employed by RMCL” for at least a year. The settlement orders Schmidt to refrain from using confidential information “for anyone’s benefit other than RMCL’s.”

Further, the settlement orders Schmidt to return all relevant documents and equipment to RMCL. Schmidt reportedly did a lot of his administrative work for the Lubec medical center from a home office on Howard Street in Bangor.

Telemedicine is a practice that uses the latest technology, including telephone and video conferencing, to allow patients in remote locations to receive treatment and counseling from physicians, social workers and nurses without leaving home. Schmidt earned more than $86,000 in his positions as senior executive officer, chief development officer and telemedicine director for RMCL.

The Regional Medical Center at Lubec alleges in the lawsuit that Schmidt asked in March to “spin off” the telemedicine program. The board of directors rejected the request, but a week later, Schmidt had filed articles of incorporation with the state and “started a systematic campaign to poach RMCL’s talented staff, funding sources and customers-partners for his new company,” the lawsuit alleges.

Hjelm said in an earlier order that Schmidt’s actions had harmed the medical center and that such harm was likely to continue in the absence of a restraining order. A hearing was scheduled for a permanent injunction against Schmidt when the settlement was reached.


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