Physician staffing company sues Arizona hospital

Global Hospitalist Solutions, a Memphis, Tenn.-based physician staffing company, has sued Santa Cruz Valley Regional Hospital for more than $1.9 million, according to the Arizona Daily Star.

Green Valley (Ariz.) Hospital entered Chapter 11 bankruptcy in early 2017 and emerged from bankruptcy in July 2018 with a new name: Santa Cruz Valley Regional Hospital. The hospital subsequently entered into contracts with Global Hospitalist Solutions.

In its lawsuit, GHS alleges the hospital fell behind on its payments. When the physician staffing company notified the hospital's CEO of the overdue payment, the hospital allegedly terminated its contracts with GHS "without cause," according to the report.

The termination agreement called for the contracts to end Jan. 31. However, the hospital allegedly continued to fall behind on payments, and GHS terminated the agreement Dec. 31.

In its lawsuit, GHS is demanding $1.9 million, which includes payment for all outstanding invoices, interest and the cost of bringing the suit, according to the report.

Santa Cruz Valley Regional Hospital's CEO told the Arizona Daily Star he could not comment on the lawsuit.

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