Fargo Physician Files Retaliation Lawsuit Against Essentia Health Over Patient Care and Billing Concerns

Dr. Danilo Dalan alleges Essentia Health fired him for reporting improper billing and advocating for patient care standards. Read more on the Fargo lawsuit.

By: AXL Media

Published: Mar 11, 2026, 7:08 AM EDT

Source: Information for this report was sourced from InForum

Retaliation and Whistleblower Allegations

According to a civil complaint filed on February 25, 2026, Dr. Danilo Dalan alleges that Essentia Health engaged in whistleblower retaliation and breach of contract. Dalan, an allergist and immunologist with nearly 40 years of experience, began working under a three-year agreement in April 2024 with an annual salary of $324,000. He asserts that his advocacy for "accepted specialty standards" in patient care was met with administrative resistance. Dalan claims that instead of addressing his substantive medical recommendations, leadership labeled his efforts as "disrespect" or "interpersonal deficiencies."

Billing Compliance Concerns

A central component of the lawsuit involves Dalan’s reporting of suspected improper Medicare billing. The complaint details his concerns regarding "allergy shot vial preparation and billing units," which he believed did not align with federal compliance requirements. Dalan alleges that shortly after he made these good-faith reports, Essentia increased its scrutiny of his work, eventually placing him on a performance improvement plan (PIP) in August 2024. While Essentia cited patient and staff complaints as the basis for the PIP, Dalan disputes these claims as unfounded.

Termination and Legal Claims

Dalan was terminated on November 20, 2024, for what Essentia characterized as "cause" related to performance. However, Dalan’s legal team argues these grounds were a "pretext" to remove a physician who had exposed potential legal and clinical risks. The lawsuit seeks at least $75,000 in damages for lost income and reputational harm. In a statement to The Forum, Dalan expressed his intent to "vindicate his rights in court" while seeking new professional opportunities in the region.