HaysMed files counterclaim against physician over noncompete 

Hays (Kan.) Medical Center has filed a counterclaim against general surgeon Jerod Grove, MD, who sued the hospital alleging that a noncompete clause in his employment contract unlawfully restricts him from practicing medicine in western Kansas. 

Dr. Grove resigned from HaysMed on Nov. 12 after nine years of employment. Shortly thereafter, he signed a contract with Greeley Health to work at Tribune (Kan.) Medical Center. HaysMed's administration, citing a board directive, then enforced the noncompete clause, effectively barring Dr. Grove from practicing at Tribune or other locations in the region, according to the report.

The lawsuit alleges that the noncompete interferes with Dr. Grove's ability to make a living, grants HaysMed a monopoly in the area and exacerbates a healthcare access issue, as he is one of only 10 general surgeons in the region. He is seeking an injunction to allow him to continue practicing until the lawsuit is resolved, as well as unspecified damages. 

In its counterclaim, the hospital alleges that Dr. Grove breached his contract, which restricts him from working within a certain distance of HaysMed. The hospital further claims that Dr. Grove planned to leave HaysMed to work in Tribune, a move it argues violated the noncompete agreement.

HaysMed also asserts that this breach led Greeley County to terminate its four-year agreement with the hospital. As a result, the hospital has filed a third-party complaint against Greeley County Health Services, accusing it of interfering with the contract.

"We must make our decisions based on what is best for HaysMed and our patients. This includes our approach to physician contracting," the hospital said in a Dec. 5 statement. "Like most hospitals, HaysMed requires noncompete agreements. We are not unique in that regard. Moreover, this is not a new practice. This has been our practice since the early 1990s, which has served HaysMed and our patients well by enabling HaysMed to provide assurances to our patients that the hospital and its clinics have the medical staff and expertise to provide needed care."

In addition to the case involving Dr. Grove, the hospital is facing another lawsuit filed by Robert Rodriguez, MD, also related to its noncompete agreements.

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