Twenty of the 27 cardiologists at Cardiology Associates of Schenectady (N.Y.) have sent resignation letters to Albany, N.Y.-based St. Peter’s Health Partners and plan to join Ellis Medicine, also in Schenectady, in January. They are making the move despite one-year noncompete clauses that sit at the center of a legal fight between the two systems, The Daily Gazette reported Oct. 8.
Four cardiologists will stay with St. Peter’s, a Trinity Health system with hospitals in Albany and Troy, and one has retired. Founded in 1983, the group is Schenectady County’s only cardiology practice. It joined St. Peter’s in January 2021.
Ellis is targeting a Jan. 1 start date for the 20 cardiologists, who have signed employment agreements with the system, an Ellis spokesperson told Becker’s. Ten advanced practice providers who work with the cardiology team have also signed with Ellis. The system has also recruited two cardiologists from outside Schenectady, who will join in the coming weeks.
“We’ve been clear in our belief that physicians should have a choice about where they work and the communities they serve, and that patients are best served when there aren’t restrictions that limit those choices,” the spokesperson said.
The group’s founder, John Nolan, MD, spoke to more than 120 people at a forum Ellis hosted in downtown Schenectady, according to the report.
“The reality is we’re actually facing a crisis,” Dr. Nolan said.
Ellis sued St. Peter’s in August. It argues that the noncompetes added to the cardiologists’ January contracts break an agreement tied to merger talks, which collapsed in June after six years. St. Peter’s countersued over an alleged non-solicitation breach and filed a notice of appeal Oct. 1. The New York Attorney General’s Office wrote to the presiding judge, expressing her concerns about how the noncompete could violate state antitrust law.
St. Peter’s has also filed a lawsuit in Albany County against two of its employed physicians, Christopher Dibble, MD, and Stephen Piacentine, MD, the Gazette reported. Both physicians are longtime members of the Ellis medical staff.
“Since it involves litigation between St. Peter’s and two of its own doctors, we will not be discussing the details around this particular case,” Ellis President and CEO Paul Milton said in a statement shared with Becker’s.
Mr. Milton said that, as alleged in Ellis’ lawsuit, St. Peter’s actively recruited Ellis-based physicians after the systems’ agreements ended, but about 95% of those providers stayed with Ellis.
“We believe physician retention is achieved by fostering a culture of respect, support and trust, not through litigation,” he said.
St. Peter’s expects no gap in coverage between mid-December and January. Ellis plans to use locum physicians during the transition, according to the report.
Becker’s has reached out to St. Peter’s and will update this article if more information becomes available.
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