Former UVA Health Leaders Accused of “Hostile Takeover” in Bombshell Federal Lawsuit
A newly filed federal lawsuit accuses former leaders of the University of Virginia Health System of orchestrating a coordinated campaign of corruption, fraud, and retaliation – even comparing the institution’s leadership to a criminal enterprise. It is alleged that as a result of this behavior, multiple patients died.
Filed on October 3 in the U.S. District Court for the Western District of Virginia, the lawsuit brings sweeping allegations under the Racketeer Influenced and Corrupt Organizations Act (RICO). The plaintiffs — four former UVA physicians and the families of two deceased patients — claim that high-ranking officials at UVA Health engaged in repeated illegal conduct to enhance their careers and financial standing at the expense of staff and patient safety.
“This case arises out of a hostile takeover of a revered medical system,” the lawsuit begins, “by a cadre of individuals determined to maximize revenues and rankings, thereby inflating their own career prospects and financial gain, through concerted, repeated, and consistent illegal acts.”
Named in the complaint are several prominent figures in UVA Health’s recent leadership, including:
Dr. K. Craig Kent, former CEO of UVA Health
Dr. Melina Kibbe, former UVA School of Medicine dean and current president of UTHealth Houston
Dr. Allan Tsung, Dr. Kim de la Cruz and Dr. Ourania Preventza
The Rector and Visitors of the University of Virginia
University of Virginia Physicians Group
The Commonwealth of Virginia
The plaintiffs allege that the group — dubbed “The Kent Enterprise” in the complaint — engaged in fraudulent billing, falsified medical records, retaliated against whistleblowers, and made reckless hiring decisions.
The lawsuit follows more than a year of internal unrest at UVA Health. In 2024, 128 UVA faculty members signed a letter of no confidence in Dr. Kent and Dr. Kibbe, citing “egregious acts” and a “culture of fear and retaliation.” Then-President Ryan initially did not take the claims seriously, penning a response that severely chastised the letter-writers for raising the allegations. Immediately following an internal investigation, Kent resigned in early 2025; UVA Health refused additional comment.
Despite the severity of the claims in the lawsuit, local media coverage since its filing has been notably absent. The Houston Chronicle broke the story, largely because Dr. Kibbe had recently taken a high-profile position at UTHealth Houston in August 2025.
“Craig Kent, Dean Kibbe, and others deliberately set out to organize a group that deployed a strategy of illegal acts that caused massive harm to patients and medical professionals” said attorney Gladstone Jones, who represents the plaintiffs.
Attorney Les Bowers, also representing the plaintiffs, alleged that Kibbe played a direct role in forcing the hiring of “incompetent and dangerous” surgeons and administrators. In response, Dr. Kibbe called the lawsuit allegations “unfounded and baseless.” Additional lawsuits are expected.
Last spring, The Jefferson Council called for new leadership at UVA via its ResetUVA project, and the UVA Health scandal was the first point of contention. Key documents include:
As of mid-October, not all defendants have been formally served, and a court date has not been set. The unusual application of federal RICO statutes in a healthcare context —filed under the same legal framework once used to prosecute mob bosses – is a sign of the severity and scope of the allegations. Unfortunately it's part of an unprecedented series of tragedies, scandals, and government investigations that have severely damaged UVA's core values and reputation during the past several years.