Ohio system’s sale may affect physician’s student debt forgiveness, lawsuit claims

Four notes: 

1. Kristina Gulotta, MD, filed the lawsuit Dec. 3 in the Summit County Court of Common Pleas, claiming she was “compelled” to seek new employment that “safeguards her current repayments benefits,” through the federal student loan forgiveness program, according to court documents cited by the news outlet. 
2. The lawsuit references General Catalyst’s $485 million proposed acquisition of Summa Health, which would convert the nonprofit system into a for-profit entity. According to the complaint, this could disqualify Dr. Gulotta from loan forgiveness under the Public Service Loan Forgiveness Program, which requires 120 qualifying monthly payments while working for a nonprofit employer.
3. Dr. Gulotta alleges she secured a new job at a hospital in Canton, Ohio, to continue qualifying for loan forgiveness. However, Summa Health’s noncompete clause reportedly prevents her from working within 22 miles of her primary area of practice, which includes the Canton hospital. The lawsuit claims Summa Health denied her request to waive the clause.
4. In a statement to Becker’s Dec. 9, a Summa Health spokesperson said the system does not comment on litigation, adding:

   “The Federal Public Student Loan Forgiveness Program is not a Summa Health benefit. It is a program administered by the federal government and is a private matter between the federal government and individual participants. We have made counselors available with expertise in assisting healthcare workers navigate personal and private student loans. The services they provide are confidential, individual, voluntary and at no cost to employees.”

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