Tri-City Wins Arbitration Over “No-Hire” Provision, Replaces NICU Director

An arbitrator has decided that a “no-hire” provision in a contract between Tri-City Healthcare District and Tri-City Medical Center in Oceanside, Calif., and Pediatrix Medical Group of California is illegal, allowing Tri-City to replace Pediatrix with one of the group’s physicians as head of a neonatal intensive care unit.

Advertisement

The suit originated with Pediatrix, a provider of pediatric subspecialty services, attempting to enforce the “no-hire” or noncompete clause which would have prevented Tri-City from appointing Hamid Movahhedian, MD, as head of the NICU.

“We are gratified that the Arbitrator followed the law and allowed Tri-City to retain the most qualified physician, Dr. Movahhedian, as director of the NICU,” said Larry B. Anderson, Tri-City’s CEO, in a news release. “I hope that other hospitals will follow suit and challenge illegal contracts that limit a hospital’s ability to hire the best physicians available.”

More Articles on Hospital Lawsuits:

Dubuis Health System Settles False Claims Suit With $8M
Former Erlanger Interim CEO Sues Hospital for $25M Over Termination
St. Mary’s Hospital to Pay $3.5M to Nurses in Settlement

Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit

Advertisement

Next Up in Legal & Regulatory Issues

Advertisement

Comments are closed.