Board hears petition from James M. Lally on early probation termination after workplace misconduct findings

The Osteopathic Medical Board of California held a second petition hearing Aug. 14 for James M. Lally, D.O., who asked that his three‑year probation, entered under a stipulated settlement adopted July 31, 2023, be terminated early.

Deputy Attorney General Maryam Ahmad summarized the underlying allegations in the accusation that led to the disciplinary order: multiple allegations from residents and others at Chino Valley Medical Center that Lally had engaged in sexualized comments and inappropriate touching, created a hostile work environment, discriminated against residents based on gender and national origin, and used his board‑affiliated status to intimidate complainants. Ahmad said the allegations were serious and the existing probation term reflected a lenient penalty given their gravity.

Lally testified under oath and acknowledged the allegations but said he had reflected, completed required education (ethics/professionalism course and civility and communication training) and continuing medical education, stepped away from the hospital environment, and taken steps he described as rehabilitative. He said he had changed his leadership style, volunteered in community clinics, and remained engaged in physician education.

Board member questioning probed both the facts in the accusation and Lally’s rehabilitation efforts. Ahmad emphasized the public‑protection standard and noted that a petitioner must accept responsibility and present affirmative evidence of rehabilitation. She argued the board should weigh the allegations’ severity against public safety and kept Lally on probation for an additional year would better protect patients and trainees. Lally said he has been ‘‘under a microscope’’ and intends to continue the changes he described.

The board received no rebuttal evidence. As with the earlier hearing, the panel took the matter under submission, told Lally the board would deliberate in closed session, and said it would deliver a written decision.

Why it matters: The accusation against Lally alleges a pattern of workplace misconduct that the AG said affected residents’ training and patient care. The board’s written determination on the petition will decide whether his probation ends early or remains in force to protect trainees and patients.