A suit filed by Charlotte, N.C.-based Carolinas HealthCare System against Mecklenburg County claims the county failed to provide notice of budget cuts and improperly withheld money, according to a Charlotte Observer report.
The lawsuit follows a decision by the county board to terminate a $40 million healthcare services agreement with the system, effective June 2013. The county claimed Carolinas refused to provide financial data on the hospital, while Carolinas' suit claims the county was the party to fall short on its end of the contract.
Carolinas says it is not challenging the county's right to terminate the contract, but says the county cannot change components within the agreement, such as eliminating a county subsidy to the hospital for indigent care.
The suit asks a court to compel the county to honor the contract or award damages and court fees. Carolinas has said it is not opposed to mediation, but would prefer something structured.
Read the Charlotte Observer report on Carolinas HealthCare System and Mecklenburg County.
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Carolinas HealthCare to Take Legal Action After County Votes to End Contract in 2013
County Manager Recommends Early End to Contract With Carolinas HealthCare
County to End Relationship With Carolinas HealthCare in Two Years
The lawsuit follows a decision by the county board to terminate a $40 million healthcare services agreement with the system, effective June 2013. The county claimed Carolinas refused to provide financial data on the hospital, while Carolinas' suit claims the county was the party to fall short on its end of the contract.
Carolinas says it is not challenging the county's right to terminate the contract, but says the county cannot change components within the agreement, such as eliminating a county subsidy to the hospital for indigent care.
The suit asks a court to compel the county to honor the contract or award damages and court fees. Carolinas has said it is not opposed to mediation, but would prefer something structured.
Read the Charlotte Observer report on Carolinas HealthCare System and Mecklenburg County.
Related Articles on Carolinas HealthCare:
Carolinas HealthCare to Take Legal Action After County Votes to End Contract in 2013
County Manager Recommends Early End to Contract With Carolinas HealthCare
County to End Relationship With Carolinas HealthCare in Two Years