Trinity Health's anesthesia provider could lose contract with 6 hospitals

Livonia-based Trinity Health Michigan cut ties with Anesthesia Associates of Ann Arbor (Mich.) at one of its hospitals after a heated dispute over services, Crains Detroit Business reported.

Anesthesia Practice Consultants of Grand Rapids (Mich.) will now provide anesthesia services at Mercy Health St. Mary's hospital, which is also in Grand Rapids. Anesthesia Associates of Ann Arbor, also known as A4, still serves five other Trinity hospitals — for now.

Earlier this year, Trinity filed a lawsuit alleging it could lose patients and incur significant administrative expenses because of rate disputes between A4 and several insurers. 

A4 had terminated its contracts with most payers. The anesthesia provider has since re-signed all of them and sued Trinity for allegedly ignoring A4's "valid non-competes and its own non-solicitation obligations." 

Trinity and A4 have been in talks to resolve their dispute. They expect to reach an agreement this week that will resolve the pending lawsuits and enable "a continuing partnership between A4 and Saint Joseph Mercy Health System," Trinity's CEO Rob Casalou and A4's CEO Greg Bock said in a statement to Crain's.

Trinity said it won't renew renew A4's contracts at its five other hospitals and outpatient centers unless the contracts allow A4's employees to join Trinity at their will. Those contracts are set to expire in June 2020.

Anesthesia Associates of Ann Arbor provides services to five Michigan hospitals, six ASCs and four pain management clinics.

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