The Bermuda Government has accused the Lahey Clinic of hatching a “secret pact” with Ewart Brown, the former premier, for “a calculated fraud on the people of Bermuda” in its latest court submission.

The publicly available documents were filed today to counter Lahey’s request for the court to halt divulging extensive evidence spanning its 20-year relationship with Dr Brown, in the latest round of the Government’s racketeering lawsuit against the Massachusetts medical clinic.

Lahey responded with a statement attesting its 25-year record of providing “high-quality care to the people of Bermuda”, and expressing dismay at what it called a politically motivated misrepresentation.

Lahey has already called for the Massachusetts district court to dismiss the case, as well as requesting a stay of discovery.

But the Government maintains that in calling for the suit to be thrown out, Lahey admitted to a “pact”, dated January 1, 2001, that not only held Dr Brown to assist in securing the Bermuda market, but prohibited him from acting in the interests of its competitors.

That agreement, along with a second with Dr Brown’s medical clinic, “more than doubled his government salary as Premier”.

“Simply put, Lahey is free to hire consultants to help it develop business in Bermuda, but not if those consultants are foreign government officials retained to secure an improper advantage over its competitors.”

Dr Brown himself has roundly dismissed all allegation of impropriety.

Speaking last Sunday night during a lengthy radio interview on Kim Swan’s “Orders of the Day”, Dr Brown readily admitted his working relationship with Lahey. “I would introduce them to whoever they would want to be introduced to,” Dr Brown told a caller. “But I never put them in a position of advantage.”

Dr Brown also dismissed any suggestion that Lahey might settle the case, telling Hott 105.7FM: “I would be totally shocked if Lahey Clinic settled on a suit where they are being accused of racketeering.

“They are going to fight like my wife and I are going to fight — to the last cent and the last breath.”

The Government has argued that the deal, disclosed “only in response to Bermuda’s allegations”, shows 20 years of concealed payments of “millions of dollars in bribes”.

The agreement started with $125,000 a year, according to the Government’s case, but rose substantially to more than double the salary of $200,000 that he received when he assumed office as Premier in 2006. It is claimed that Lahey subsequently merged its deals with Dr Brown and with Bermuda Healthcare Services — with the non-disclosure stipulations called “a clear act to conceal the form and extent of the Lahey-Brown relationship from public view”.

Lahey’s statement emphasised the clinic’s history as the first to bring highly-trained specialists to Bermuda to provide care “where it is more convenient and lower cost”.

Saying the clinic had improved the health of thousands on the island, the statement said its agreements and business practices had complied with all regulations and were “beyond reproach”.

“It is disappointing to see a commitment of 25 years dramatically misrepresented for what appears to be political reasons.

“We are committed to defending this lawsuit through every step of the process and we will continue to provide the care and support our patients in Bermuda need and deserve.”

To read the latest filing, click on the file under the Related Media heading on this webpage

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