In February, a judge placed an injunction against six physicians who previously took cases to Pierce Street Same Day Surgery to prevent them from affiliating with Riverview Surgical Center, a new ASC being constructed by Tri-State Specialists. Here are five things to know.
1. The judge initially placed the injunction on the six physicians to prevent them from affiliating with Riverview Surgical Center after Pierce Street accused the physicians of violating non-compete clauses in their contracts. However, Drs. Monk and Nelson had their non-compete agreements expire in late 2016.
2. The judge also deemed monetary damages were more appropriate for the claims against Drs. Monk and Nelson instead of the injunction.
3. Physicians currently involved in Riverview Surgical Center are not required to divest prior investments in the ASC. The center broke ground in 2017 and is expected to open in 2019.
4. The non-compete agreement the physicians had with Pierce Street states they weren’t allowed to hold interest in another center within 30 miles while partners at the ASC or for one year after leaving. While the centers are fewer than four miles apart, they reside in different states with varying laws governing ASC ownership.
5. Pierce Street claims the six physicians were involved in Riverview planning in 2015, when the non-competes were in place.
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