CHS moves to ban former Lutheran Health Network CEO from advising competing health system

Listen
Text
  • Small
  • Medium
  • Large

Franklin, Tenn.-based Community Health Systems has asked a judge to issue a temporary injunction barring the former CEO of Fort Wayne, Ind.-based Lutheran Health Network from continuing in his role as an adviser to a competing Indiana health system, the News-Sentinel reports.

Lutheran Health Network and CHS filed a lawsuit against ex-Lutheran CEO Brian Bauer late last year alleging Mr. Bauer shared "confidential and proprietary information" with Indianapolis-based IU Health, which violated CHS' stock option agreement. IU Health revealed plans last October to build two outpatient facilities near Fort Wayne-based Lutheran Hospital. Mr. Bauer was hired as CEO of IU Health Fort Wayne following his dismissal from Lutheran last May, according to a second News-Sentinel report.

If the temporary injunction is granted, Mr. Bauer would be barred from engaging in IU Health's activities "in any role because [Mr.] Bauer inevitably could or would disclose or use [CHS'] confidential or proprietary information," the report states. He would also be prevented from initiating certain financial activity to grow IU Health's presence in Fort Wayne using that confidential information.

In his motion to dismiss Lutheran and CHS' original lawsuit filed earlier this month, Mr. Bauer stated the motion constituted "an attempt to sabotage that business relationship [between Mr. Bauer and IU Health] and … to prevent Mr. Bauer from working with those who seek to improve access to quality health care in Fort Wayne and northern Indiana," the report states.

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars