Roofing company sues BJC HealthCare, seeks to halt campus renewal project

A roofing and construction company is suing St. Louis-based BJC HealthCare, alleging the health system denied the company a chance to bid directly on construction work on a new patient tower, which is part of a $1.5 billion campus renewal project.

Instead of being allowed to directly bid on the project to install the roof on a new patient tower, CMT Roofing claims it was "induced" by BJC to enter into a $747,000 subcontract with RSS Construction. CMT, which is owned by a black woman, alleges BJC engaged in race discrimination when structuring the relationship between CMT and RSS, which is owned by a white man.

CMT began work on the project in October 2016 after a five-month delay due to mismanagement of the project by BJC, according to the lawsuit. The construction company claims it was forced to stop work in March 2017 "because of BJC's failure to remedy the discrimination CMT faced in, among other things, not being paid for work performed in the same manner as white male contractors were paid for work performed," the lawsuit states.  

During the dispute over payment, CMT claims it learned BJC awarded RSS a $1.5 million contract to perform the exact same job the health system had subcontracted to CMT for $747,000. "In other words, BJC paid the white male-owned construction firm, RSS, $1.5 million to do the exact same work that the black woman-owned firm, CMT, was paid half that amount to do," the lawsuit states.

BJC spokeswoman June Fowler told the St. Louis Post-Dispatch CMT's lawsuit is meritless. "We developed and are executing a comprehensive diversity and inclusion program that, to date, has resulted in more than $192 million in contracts being awarded to minority- and women-owned businesses," she said.

CMT is seeking an injunction to stop work on the campus renewal project, $5 million in damages and a court order requiring BJC to establish a $1.5 million trust fund to be used by the health system "to eradicate the racially hostile environment and for support services for minority businesses and workers." 

More articles on legal and regulatory issues:

Female physicians sue Carolinas HealthCare over discriminatory pay practices
Owner of medical debt collection business gets prison time for embezzling $800k
South Carolina family practice chain reaches $2M settlement over alleged Medicare billing scheme

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars