Providence and MultiCare Settled Spine Surgery Lawsuits
The health systems agreed to pay $155.5 million to resolve allegations of unnecessary spine surgeries.
Updated on Oct. 5, 2026 in Healthcare
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Providence and MultiCare Health System have agreed to a $155.5 million settlement to resolve class-action lawsuits regarding unnecessary spine surgeries. The claims centered on surgeries performed by neurosurgeon Jason Dreyer, who was accused of prioritizing productivity over patient needs.
Why it matters
The health systems entered into these settlements to avoid the financial costs and legal uncertainty associated with prolonged litigation. This move provides a resolution for affected patients while concluding years of legal scrutiny surrounding surgical practices.
The $155.5 million settlement follows prior government fraud payments of $22.7 million by Providence and $3.7 million by MultiCare. Eligible patients who underwent surgery by Dr. Dreyer or Daniel Elskens at Providence St. Mary are entitled to $2,000 payouts.
The players
Jason Dreyer
He is a neurosurgeon who served at both Providence and MultiCare before his medical license was restricted.
Providence
It is a major health system with 51 hospitals that has faced multiple legal challenges regarding surgical billing.
MultiCare Health System
It is a healthcare provider that operated the facility where Dr. Dreyer worked prior to his resignation in 2021.
The details
Allegations suggested that Providence St. Mary Medical Center used a productivity metric that incentivized complex spine procedures, leading to claims of unnecessary surgeries. Dr. Jason Dreyer faced license restrictions in 2021 following his tenure at both Providence and MultiCare.
Timeline
Dr. Dreyer was a high-producing neurosurgeon from 2014 to 2018.
Providence placed Dr. Dreyer on administrative leave in May 2018.
Dr. Dreyer resigned from Providence in November 2018.
MultiCare hired Dr. Dreyer in 2019.
Dr. Dreyer resigned from MultiCare and saw his medical license restricted in 2021.
Market Landscape
This settlement highlights the industry-wide shift toward increased scrutiny of physician productivity incentives. It also marks a significant move by major health systems to mitigate reputation risk through centralized legal resolutions.
Patients who underwent specific procedures with Dr. Dreyer or Daniel Elskens at Providence St. Mary may be eligible for $2,000 compensation. Affected individuals should monitor court communications regarding the settlement approval process.
The takeaway
Patients who have concerns regarding their surgical history or potential eligibility should consult their medical records to verify their treatment timeline. This case serves as a reminder for patients to always seek a second opinion when recommended for complex spinal procedures.
Further reading
For more background on health sector legal issues, see Washington Healthcare.
Source note: This article includes information reported by Becker's Hospital Review | Healthcare News & Analysis.
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