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Medical Error

Moda's president was caught cheating on a recertification exam for surgeons.

DR. WILLIAM E. JOHNSON

Moda Health made a big splash last year when it shelled out a reported $40 million for naming rights to the Portland Trail Blazers’ arena.

The Moda Center, formerly the Rose Garden, is the health insurance company's most visible mark. It signaled a new brand and identity for Moda—covering 1.6 million people in Oregon, Washington and Alaska—as it shrugged off its old name, ODS.

The August 2013 announcement with the Trail Blazers came from Moda's president, Dr. William E. Johnson, a thoracic and vascular surgeon.

Johnson, 52, has led the insurance company into its new era, despite what the state's medical licensing board in 2010 called "unethical" behavior.

Documents from the Oregon Medical Board show Johnson was caught cheating on a 2008 recertification exam for the American Board of Surgery, a leading certification organization. The board revoked Johnson's certification for five years.

Board certification is entirely voluntary, but it's expected of surgeons hoping to practice at major medical centers.

Dr. Frank Lewis, executive director of the American Board of Surgery, tells WW he can't comment on individual cases but says the board doesn't tolerate cheating. "We consider that unprofessional and view that as a significant problem in a physician," Lewis says.

Johnson, who earned $409,000 in 2013, tells WW he doesn't know why he cheated on the exam. He says he doesn't believe the incident affects his leadership of Moda. "It's not a direct reflection of who I am," he says. "Sometimes good people do bad things."

He joined Moda in 2009, when he knew he was facing an investigation for the cheating. Johnson says he did not tell Moda about the incident at the time, but disclosed it after he reached a 2010 agreement for "corrective action" with the Oregon Medical Board, the state's licensing agency for physicians.

Moda CEO Robert Gootee says he's not bothered by the fact Johnson didn't disclose the issue when he was hired. Gootee says Johnson's work has not been affected by the incident. 

"His work is what we look at, and his work has been exemplary," Gootee says.

Johnson graduated from the University of Southern California College of Medicine in 1989 and earned his Master of Business Administration from the University of Tennessee in 2010. He practiced surgery in Portland for 13 years before joining Moda as director of medical management. He became president in 2013.

According to state documents, Johnson first earned certification from the American Board of Surgery in 1998. The board requires recertification every 10 years, and in 2008 Johnson passed the required test.

What happened next is described in records from the Oregon Medical Board.

"While preparing for the recertification examination for surgeons, [Johnson] improperly accessed a copy of the American Board of Surgery's written certification examination, surreptitiously made a copy of the examination, and used that document over the next several weeks to prepare a 'perfect' answer for the examination," Oregon Medical Board records read.

"[Johnson] took the examination. [Johnson's] score was so high that it raised suspicions and triggered an inquiry by the American Board of Surgery. Upon receiving a telephone call that questioned his preparation for the examination, [Johnson] admitted that he had inappropriately accessed and misused confidential testing material to prepare for the American Board of Surgery's certification examination."

The state medical board decided not to level formal discipline. Instead, in May 2010 Johnson agreed to perform 100 hours of community service and undergo psychotherapy.

Johnson declined to say how he obtained the test.

He says he's put the incident behind him. 

“I’ve taken complete, full responsibility for my actions,” Johnson says, “and I’m moving forward.” 

WWeek 2015

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