By CRISTINA JANNEY
Hays Post
Dr. Jerod Grove has sued HaysMed in U.S. District Court to stop the hospital from enforcing a noncompete clause that he says prevents him from practicing medicine in western Kansas.
Grove, a general surgeon, resigned from the hospital on Nov. 12. HaysMed has employed him for nine years.
Grove has signed a contract with Greeley Health to practice at Tribune Medical Center in Tribune, Kansas.
The hospital administration indicated they were under a board directive to enforce Grove's noncompete clause, prohibiting him from practicing at Tribune Medical Center and most of western Kansas.
The noncompete stipulates Grove can't practice medicine within 110 miles of the city of Hays and within 30 miles in any direction from the city limits of any other city or town where the physician performs services on behalf of the hospital for two years.
Grove's attorney argues in the lawsuit the noncompete:
• Interferes with Grove's ability to make a living.
• Constitues HaysMed operating a monopoly
• Creates a health care access issue in western Kansas in which Grove is only one of 10 general surgeons in the region.
"... the prevention of Dr. Grove from providing his services in western Kansas is likely to significantly reduce access to medical care in western Kansas, and more specifically may cost someone their life," the lawsuit said.
Grove is seeking an injunction to allow him to continue practicing medicine in Tribune while the lawsuit is being resolved. He is also requesting unspecified damages to be determined at trial.
According to the lawsuit, during his time at Hays Med, "Dr. Grove began to notice certain troubling aspects of the treatment of HaysMed staff. Various issues were brought to his attention, and ultimately, he felt the best course of action was to resign his employment."
SEE RELATED STORY: LETTER: HaysMed surgeon announces departure
SEE RELATED STORY: Doctors share concerns on administration, future of HaysMed
Grove attempted to resign in August. However, the HaysMed administration brought the noncompete clause of his contract to his attention. According to the lawsuit, Grove was told the hospital would file an injunction against him practicing in western Kansas if he resigned.
The lawsuit states, "His concern regarding rural access to critical services was ignored and disregarded."
Grove is not the first physician to leave HaysMed in recent years. According to the 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 Federal Trade Commission recently issued a final Non-Compete Rule banning most non-compete agreements between an employer and its workers. The commission said noncompete clauses were an unfair method of competition.
However, that rule was overturned by a U.S. District Court ruling in Texas, which said the Federal Trade Commission had no authority to make such a rule.
Grove's lawsuits cited several findings from the Federal Trade Commission specifically related to the harms that noncompete clauses can cause in health care, including:
• Hundreds of physicians and other commenters in the health care industry stated noncompetes negatively affect physicians’ ability to provide quality care and limit patient access to care.
• Noncompetes increase retaliation if physicians object to the practices' operations, poor care or services.
• Noncompetes limit access to care or patient choice.
• Noncompetes resulted in physicians leaving the area and severing patient relationships, and this caused a loss of knowledge, trust and compatibility in physician-patient relationships.
HaysMed issued a written statement to the Hays Post via email Monday afternoon.
“We have received and reviewed Dr. Grove’s complaint. We disagree with his allegations and look forward to responding through the appropriate legal process.
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 Western Kansas, just as we have for many decades.”
The case was filed on Nov. 12. No dates for hearings had been set as of this post.