Monroe County and the former director of nursing at the county-owned senior living and rehabilitation center in Waterloo have reached a settlement agreement in a wrongful termination lawsuit filed last year.

A document recently obtained by the Republic-Times through the Freedom of Information Act indicates that in April, Monroe County agreed to pay a total of $125,000 to former Oak Hill Director of Nursing Susan Nordhaus and her attorney. 

This settlement comes with the stipulation that the lawsuit filed by Nordhaus be dismissed with prejudice and Nordhaus’ personnel employment file indicate “voluntary resignation” as the designation for her separation of employment from Oak Hill.

The court settlement further states Nordhaus was awarded $25,000 in back pay and $50,000 for “damages associated with emotional stress,” with the remaining $50,000 payable to the law firm representing Nordhaus in the matter.

The Monroe County Board voted to terminate Nordhaus’ employment with Oak Hill in October 2021, shortly after former Oak Hill administrator Brian Koontz was placed on administrative leave and subsequently resigned.

Nordhaus had also been on leave when Koontz resigned – although she chose to maintain her employment before eventually being terminated. 

Nordhaus later filed suit, alleging the termination was retaliation for reporting what she believed to be fraudulent activity and for refusing to participate or aid in such activity regarding Oak Hill’s handling of Medicaid, Medicare and TRICARE reimbursement materials and other required documentation.

The original lawsuit alleged a violation of the Illinois Whistleblower Act, as reporting claims of alleged fraud are “protected activity.”

Nordhaus also alleged she was threatened with public humiliation, and that the Monroe County Board of Commissioners and Lucas Liefer – who at that time was Monroe County state’s attorney  and is now a circuit judge – prevented her from reporting this alleged fraudulent activity.

The three counts were filed in Monroe County Circuit Court before being transferred to U.S. District Court – Southern Illinois District Court. 

Just prior to action by the county commissioners to accept Koontz’s resignation in September, Nordhaus addressed the board during the public comment portion of that meeting. 

“What was the first day the commissioners learned that an employee tested positive for meth? Who informed the commissioners that the employee tested positive for meth? Isn’t it true I reported suspected Medicare fraud on the date of Friday, Sept. 10, 2021? Isn’t it true the commissioners were informed of my report of Medicare fraud in the afternoon of Friday, Sept. 10, 2021? What has the county done to investigate my report of Medicare fraud? No answers,” she said then.

With one legal case now settled, Monroe County remains in litigation with former Oak Hill Assistant Director of Nursing Jennifer Morgan, who filed suit in June alleging the county and Oak Hill, located at 623 Hamacher Street, violated the Illinois Human Rights Act through retaliation and, ultimately, her termination in late 2021 after she reported sexual harassment by Koontz.

In addition to monetary relief, Morgan is seeking injunctive relief and has requested the court enter an order declaring that Monroe County violated the Illinois Human Rights Act.

A case management conference in this matter is scheduled for Dec. 11 in Monroe County Circuit Court.