Dec 05, 2024

Second doctor sues HaysMed over noncompete clause in contract

Posted Dec 05, 2024 11:01 AM

By CRISTINA JANNEY
Hays Post

A second doctor has sued HaysMed, arguing the noncompete clause in his contract is too restrictive.

Dr. Robert Rodriguez, an oncologist at HaysMed, filed suit against the hospital on Tuesday after his resignation on Nov. 16.

SEE RELATED STORY: LETTER: Oncologist announces resignation from HaysMed

He joins Dr. Jerod Grove, a general surgeon, who has also resigned from the hospital and sued the hospital to prevent the medical center from enforcing a noncompete clause in his contract.

Rodriguez, who grew up in Goodland, expressed in the lawsuit a desire to continue to live and practice in western Kansas. Both Grove and Rodriguez's contracts would prevent the doctors from practicing within a 110-mile radius of Hays, which encompasses about 80% of western Kansas.

Noncompete exclusion area Courtesy image
Noncompete exclusion area Courtesy image

Both physicians have cited issues with the hospital administration and concerns about the quality of care at the medical center.

SEE RELATED STORY: Doctors share concerns on administration, future of HaysMed

Rodriguez's lawsuit cited specific issues with care, including long wait times for crucial testing and treatment of cancer patients.

It has been taking up to six weeks to get insurance prior authorization to initiate chemotherapy, three weeks to get CTs and three to four weeks to obtain PET scans and MRIs, the lawsuit said.

"These delays had never been the case at Hays Med before, and it is definitely not the standard of care at our larger institutions in Kansas," the lawsuit said. "Delays in obtaining tests or starting treatment can have a negative impact on patient outcomes."

Rodriguez said in his lawsuit his employment was "unbearable," forcing him to resign from his position.

The lawsuit says HaysMed has been unable to maintain physicians, specifically within the cancer center.

He was hired in July 2015 with plans to expand the practice to four doctors. However, those plans rapidly changed when both of his longtime partners left the facility within six months of his starting, the lawsuit said.

The other hematologist/oncologist left after 15 years of service at HaysMed because of direct conflicts with the administration, the lawsuit said. She uprooted her entire family and moved back to the Kansas City metro area primarily because she was unable to work locally, the lawsuit said.

HaysMed was unable to recruit physicians, according to the lawsuit. The lawsuit said Rodriguez used his personal contacts and reputation to recruit and successfully sign doctors to work in oncology at the hospital.

Rodriguez's colleagues Dr. Anthony Accurso and Dr. Matthew Mallory both left Hays Med because of direct conflicts with the administration, the lawsuit alleges.

The lawsuit says traveling physicians could not fill the vacuum left by the two doctors.

Rodriguez says in the suit that for three weeks, he was the only oncologist working in a practice normally staffed by three or four doctors.

Rodriguez claims in the suit he was so overwhelmed by the workload that he was evaluated in the emergency room for a possible heart attack. He was diagnosed with an ulcer that he attributed to stress. 

Rodriguez is one of only three oncologists in western Kansas. 

According to the lawsuit, he covers about 5,000 patients through his practice.

According to Grove's lawsuit, HaysMed has lost 12 physicians, two certified registered nurse anesthetists, and three midlevel providers. None of these have remained in the region and provide services to the residents of the state's western half.

Services impacts include cardiology, urology, orthopedics, OB/GYN, hospitalists, oncology, nephrology and general family medicine, the lawsuit said.

The lawsuit alleges HaysMed is using its noncompete clauses to try to maintain a monopoly in health care in western Kansas.

The American Medical Association’s Council on Ethics and Judicial Affairs discourages noncompete agreements in physicians’ employment contracts because they can potentially negatively affect patient care, the lawsuit said.

The lawsuit argues barring Rodriguez from practicing in western Kansas will result in patients waiting much longer or traveling longer distances for care, which could both result in adverse health outcomes, including death.

The lawsuit says HaysMed's attempt to maintain a monopoly could increase patients' insurance costs by giving HaysMed a better bargaining position with insurance companies.

The lawsuit also alleges HaysMed administrators may be using noncompete clauses in contracts to better position the hospital in the case of a potential sale.

"Upon information and belief, Hays Med has, for various reasons, been exploring the possibility of entering into either a sale, merger or other business relationship with another hospital system as it has been operating with negative returns for a number of years. In order to get the best price possible, upon information and belief," the lawsuit said.

"HaysMed is attempting to retain its providers, including physicians, nurses and other staff, in order to ensure it retains a larger value in the instance of a sale or re-negotiation of its insurance payment rates," the lawsuit said.

SEE RELATED STORY: HaysMed losses $5M; current, former staff express concerns about care, administration

SEE RELATED STORY: HaysMed administrators respond to challenges facing hospital

The lawsuit argues HaysMed would not be harmed if Rodriguez was allowed to continue practicing medicine in western Kansas. HaysMed is aware of Dr. Rodriguez’s resignation and has 90 days to find a suitable substitute.

"This is ample time to mitigate their damages, and it is their responsibility to ensure continuity of care at their hospital as they have reasonable notice of  Rodriguez's departure," the lawsuit said.

Rodriguez states in his lawsuit he has been unable to negotiate with another hospital in western Kansas because HaysMed has stated it will enforce his noncompete clause.

Grove signed a contract with Greeley County Hospital. HaysMed has countersued both Grove and Greeley County Hospital to stop Grove from practicing at the hospital in Greeley County.

Rodriguez has requested an injunction allowing him to continue to practice in western Kansas and is seeking unspecified damages to be determined at trial.

HaysMed issued a statement on Rodriguez's lawsuit Wednesday afternoon. 

"We are aware of Dr. Rodriguez’s complaint and are currently reviewing the details. We do not agree with the allegations presented and intend to address this matter through the proper legal channels, " the statement said.

"Noncompete agreements are standard practice in health care and provide assurance to our patients that the hospital and its clinics have the medical staff and expertise to provide for their oftentimes complex medical needs.

"HaysMed remains dedicated to providing specialty care for the residents of Hays and the region, just as we have for many decades," the statement said.