A legal fight over non-compete clauses left behind by the failed merger of Schenectady, N.Y.-based Ellis Medicine and Albany, N.Y.-based St. Peter’s Health Partners is closing in on a Jan. 1 deadline for patients of the county’s only cardiology group, The Daily Gazette reported Nov. 8.
More than 70 people gathered outside the Nott Street entrance to Ellis Hospital on Nov. 8 in support of Cardiology Associates of Schenectady, whose physicians are at the center of a series of lawsuits.
St. Peter’s, part of Livonia, Mich.-based Trinity Health, acquired as many as 27 physicians from the group, which has long performed procedures at Ellis Hospital. Ellis and St. Peter’s later pursued a merger, but after years of negotiation, the talks broke down and the deal was canceled.
Ellis sued St. Peter’s in August, alleging noncompete provisions in the cardiologists’ employment agreements would keep them from working for Ellis. St. Peter’s sought a temporary restraining order to stop Ellis from recruiting the physicians. A Schenectady County Supreme Court judge has since lifted the order, and St. Peter’s has filed a notice of appeal.
St. Peter’s is also suing two cardiologists, Christopher Dibble, MD, and Stephen Piacentine, MD, alleging they worked with Ellis to recruit peers and passed along proprietary information. The two physicians have countersued, claiming St. Peter’s is seeking to enforce the noncompete clauses to cripple Ellis and keep the cardiologists from joining Albany Med Health System. Ellis and Albany Med have discussed a potential affiliation since the St. Peter’s deal collapsed.
Physicians who spoke at the rally said patients are caught in the middle.
“We’re scared. I’m scared for my patients. I’m scared it’s not going to happen, and people will die,” Denis Manor, MD, said after the rally.
Robert Parkes, MD, described a July meeting with St. Peter’s.
“I think at the meeting in July, they [St. Peter’s] were in a state of shock that we didn’t just say yes,” Dr. Parkes said. “I think they expected to propose this for us all to agree, and that by now we’d all still be with St. Peter’s, and all of our outpatients would be going over to St. Peter’s. I don’t think they ever expected that the majority of us were going to stay, and that they were going to have very few providers left to take care of patients, and they don’t know how to deal with it.”
Ellis said in a statement that 22 cardiologists have signed employment agreements with the system.
“Throughout this process, our position has been straightforward: Let physicians decide where they want to practice, let patients see the doctors they choose, and keep these essential services close to home,” the statement said. “We are encouraged, too, by the strong support from physicians who have chosen Ellis. Twenty-two cardiologists have signed employment agreements with us, and we have successfully recruited additional physicians from outside the area who want to be part of the future of healthcare in Schenectady.”
The cardiologists hope to see patients at new offices in the new year, and the transfer of medical records was a central issue for speakers at the rally.
“They need to start working together on getting all of these medical records over so that we can have access on January 1st,” Dr. Parkes said. “If the records haven’t been transferred legally, the patient is St. Peter’s patient. On January 1st, if they have an appointment with me next June, but they call January 1st with a problem, they’re going to be calling the St. Peter’s office, and they have all the records, and they’re going to have to deal with it until that patient is transitioned.”
St. Peter’s said in a statement that Ellis declined its proposals to extend current services.
“Despite what Ellis is saying publicly, our focus remains on ensuring patients have uninterrupted access to care and a clear understanding of their options,” a St. Peter’s spokesperson said. “For any patient who chooses to transition their care elsewhere, we will assist in facilitating that transition and help ensure continuity of care. While Ellis declined our proposals to extend current services while a long-term solution is pursued, we remain committed to working collaboratively toward an outcome that best serves patients and the Schenectady community.”
“The perfect solution is for the lawsuits to disappear, and for Ellis and St. Peter’s to start talking about how we are going to transition this and work together so that staff stays in our present offices until the last week of December, and then whoever wants to switch moves over to Ellis late December, early January,” Dr. Parkes said.
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