Lawsuit accusing UHS of improperly diverting $100M from hospital partially dismissed

A judge has partially dismissed a lawsuit George Washington University filed against King of Prussia, Pa.-based Universal Health Services, alleging the for-profit hospital operator improperly diverted $100 million from George Washington University Hospital, according to the Washington Business Journal.

Washington, D.C.-based George Washington University sued UHS in December, claiming UHS kept profits that should be invested in the university's medical school and network of physicians. UHS owns 80 percent of George Washington University Hospital.

"Instead of investing sufficient hospital revenue in the university's research and teaching missions, UHS has paid itself these funds in the form of outsized dividends from artificially inflated, excess profits," the complaint read

D.C. Superior Court Judge Jason Park partially granted UHS' motion to dismiss the case, throwing out all but one claim. 

The judge dismissed claims that UHS breached its partnership agreements by failing to make payments or failing to make an integrated health system, and that UHS acted in bad faith by not providing enough support, according to the report. 

The one claim that stands is that UHS failed to support six clinical programs at the hospital. 

Read the full report here. 

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