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

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

Reconsider What’s Possible: Enterprise RCM and the Pro-Fee Practice

Tuesday, July 28
11:00 AM - 12:00 PM CDT

Presenters: Garett Kreitz, Med-MetrixJohn Stefanowicz, Med-MetrixPaul Summers, Nevada Heart & Vascular

Advertisement

Next Up in Legal & Regulatory Issues

Advertisement

Comments are closed.