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Choice Surgical Center LLC and Michael J. Trobec, D.O., filed a lawsuit Thursday against QHG of Warsaw Inc., the corporation that owns and operates Kosciusko Community Hospital.
The suit asks the court to find that the non-competition provision in the hospital's employment agreement with its employed physicians is void and unenforceable because, among other things, the provision is overly broad, violates public policy and does not cover protectable interests owned by QHG or the hospital.
KCH CEO Michael Mullins responded to the lawsuit this morning, saying, "We believe the allegations outlined in the lawsuit appear to be false and misleading. We will review the complaint and follow up appropriately. We have additional concerns about the possible conduct of Choice Surgical Center representatives relative to existing contracts among parties who have a current relationship with Kosciusko Community Hospital."
The suit futher claims that Choice believes the actions taken by QHG/KCH are meant to form the basis for a lawsuit against Choice and to keep Choice from operating an entity that would compete with the hospital.
The lawsuit is a response to the hospital's recent suspension of Trobec from his duties as a KCH physician. Monday, Trobec, a family practitioner and employee of KCH, met with Michael Mullins, CEO of KCH, and was asked certain questions relative to Trobec's involvement with Choice.
When Trobec informed Mullins that no one has solicited his employment with Choice, Mullins relieved Trobec of his work responsibilities for three days to reconsider his answers to the questions regarding Choice's solicitation of Trobec.
Thursday, - the same day the lawsuit was filed - Trobec's contract with KCH was terminated, according to Buck.
Trobec believes these actions relates to his wife's role in discussions regarding a proposed new surgery center and multi-specialty physician complex to be established in Warsaw. His wife, Laura Fitzsimmons, is a local attorney, who has worked with Tobias W. Buck on behalf of Choice Surgical Center.
Buck, who is spearheading the community-sponsored medical campus project, said, "We formed Choice Surgical Center LLC because we wanted to explore providing patients with a choice in where they received their medical care - an alternative for ambulatory and out-patient medical services. By providing this alternative, we would bring a valuable benefit to the community, preserve the free-market system and pursue competition. These are the values that ultimately improve the health care system, lead to lower health care costs and better quality outcomes for patients."
Buck also explained his reasons for filing the lawsuit. "Several months ago, I began working with Laura Fitzsimmons to explore the possibilities of providing a medical campus for the community. She had discussed our plans with Dr. Trobec." Trobec's employment contract with the hospital contains a broad restriction that purports to prevent him from "engag[ing] in any business that is in direct competition with the business" of the hospital or any of its affiliates. Relieving Trobec of his job responsibilities indicates that his discussions with his wife about the new surgery center may constitute a violation of the contract.
Buck added, "When I learned of the hospital's actions regarding Dr. Trobec, I realized that the hospital apparently was not interested in allowing what it viewed as competition to enter the community. It is shocking that the hospital would use the employment agreements with its physicians to restrict them from even talking about other alternatives for health care in the community. We are asking the court to intervene by ruling that the anti-competition covenant is too broad. It is important to have input from physicians who may use a new facility, so that we can provide a viable alternative for ambulatory and out-patient medical services. I felt it was the prudent course to seek the guidance and wisdom of the courts to decide this issue."
