Lee Health sues Nicklaus Children’s over eviction dispute

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Fort Myers, Fla.-based Lee Health has filed a lawsuit against Nicklaus Children’s Hospital in an effort to block its eviction from the Golisano Children’s Health Center in Naples — a move that could shut down a facility that serves about 65,000 patients a year. 

At the heart of the dispute is Nicklaus Children’s refusal to recognize Lee Health’s lease following its transition to a private nonprofit last fall, a Lee Health spokesperson told Becker’s. The system was notified of the eviction on March 11 and ordered to vacate by April 4.

Golisano Children’s is a hub of pediatric care in Collier County, offering services in more than 20 specialties — including cardiology, oncology, neurology, and pulmonology — as well as developmental support, urgent care, rehab therapies, and autism services.

If Lee Health is forced to vacate, families may have to travel to Lee County for essential care. The system said it has operated the Naples facility since 2011 to reduce that travel burden. In 2016, it moved into a larger nearby location through a partnership with then-Miami Children’s Hospital, now Nicklaus Children’s. Both organizations invested $1.4 million in the facility’s buildout, with Nicklaus Children’s holding the master lease.

Initially, Nicklaus Children’s provided physicians for the urgent care clinic while Lee Health staffed the facility. But in 2019, Nicklaus Children’s withdrew from operations, and Lee Health assumed full responsibility. Since then, the system has paid the lease and provided care without any direct involvement from Nicklaus Children’s, according to Lee Health.

“We have had zero presence from Nicklaus Children’s in this building since 2019,” Lee Health Chief Physician Executive Emad Salman, MD, told Becker’s. “We have continued to pay the lease and invest in the facility to ensure children in this community receive the care they need.”

Lee Health said it has spent $5.4 million on improvements at the site and alleges Nicklaus Children’s is now trying to reclaim a building it hasn’t operated in for years, despite a standing agreement. Dr. Salman said the eviction notice came without warning — a claim Nicklaus Children’s refutes — and left the system no choice but to take legal action.

“The last thing we wanted was to go to court, but we had no other option,” Dr. Salman said. “Come April 5, we didn’t want law enforcement showing up to evict us while we have patients scheduled for treatments. Our priority is to ensure uninterrupted care for our patients.”

Nicklaus Children’s, however, maintains it has acted transparently and made multiple attempts to coordinate a smooth transition.

“As a nonprofit health system, Nicklaus Children’s is committed to supporting the healthcare needs of all children,” a spokesperson for the system told Becker’s. “We are disappointed Lee Health has chosen to take unnecessary legal action against our organization despite our attempts to work amicably on the lease transition. Their decision will unnecessarily divert limited nonprofit resources that should be directed toward providing care for children in need.”

Nicklaus Children’s said it notified Lee Health nearly six months ago of its intent to terminate the lease and repurpose the facility for its own operations.

“We’ve made multiple attempts to engage Lee Health in collaborative conversations to ensure a smooth and respectful transition, including as recently as last week,” a spokesperson said. “Lee Health has not responded to us and our efforts to provide them sufficient time to find alternate office space and to ensure that there was no interruption of care for their patients. To our surprise, earlier this week, we learned of their intent to pursue legal action against Nicklaus Children’s.”

Nicklaus Children’s said it is committed to working with Lee Health to find a positive path forward, but “progress can only be made through dialogue and cooperation.”

Despite the legal battle, both organizations say they remain committed to pediatric care in Collier County. However, with the April 4 deadline fast approaching, the future of Golisano Children’s remains uncertain.

Lee Health says it hopes for a resolution outside of court — but is standing firm on its commitment to patients. “We are not abandoning our patients, and we will continue to provide the care they deserve,” Dr. Salman said.

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