In December, Sioux City, Iowa-based Pierce Street Same Day Surgery filed a lawsuit against physician owners to enforce a non-compete clause and prevent them from constructing a new center within four miles of the existing ASC; now the physicians have filed a counter lawsuit alleging Pierce Street wrongfully terminated their operating agreement and interference with business relationships, according to the Sioux City Journal.
Here are five things to know:
1. In addition to claiming Pierce Street broke their operating agreement when their contracts were terminated, six physicians along with their practice — Tri-State Specialists — and CEO Lee Hilka filed claims that Pierce Street misappropriated trade secrets. According to the report, Pierce Street allegedly gathered information from a former Tri-State physician and made "false and malicious" statements.
2. The former Tri-State physician, Michael Steele, MD, left the group in June 2017 and Tri-State alleges he made false statements about the group and development of their planned ASC, Riverview Surgical Center.
3. The counter suit also touches on Pierce Street's claims that four of their former physicians broke non-compete clauses in their contracts when they decided to become involved with Riverview. The four physicians said their involvement didn't violate the non-compete clause since they became involved in a new center instead of an existing center; the non-compete prohibited them from becoming involved with competing hospitals or ASCs within 30 miles of Pierce Street while owners, or within one year after selling their stake.
4. The four former Pierce Street physicians also claim they didn't have interest in the new center and didn't have plans to invest in it. However, Pierce Street repurchased their ownership for what Sioux City Journal reported was 75 percent of fair market value.
5. Two other physicians in the suit report Pierce Street terminated their agreements wrongfully back in 2015.