A North Carolina Business Court ruling will allow Atrium Health to move forward with a new anesthesia provider.
North Carolina Business Court Judge Michael Robinson issued a split order on Friday, granting Southeast Anesthesiology Consultant’s request for an injunction to block Atrium Health from soliciting its anesthesiologists.
He then denied Southeast Anesthesiology’s request for an injunction over its allegations that Atrium had obtained and used trade secrets and propriety information to establish a competing medical services provider.
Robinson’s order follows a nearly five-hour hearing this week between Atrium, Scope Anesthesia’s Dr. Thomas Wherry and Southeast Anesthesiology, an affiliate of Mednax (NYSE: MD).
At stake is a nearly $100 million contract over anesthesiology services in the Charlotte market.
Southeast Anesthesiology conducted more than 135,000 procedures in the Charlotte market in 2017.
But the current contract between Southeast Anesthesiology Consultants and Atrium Health expires June 30.
Atrium has signed a deal with Scope Anesthesia to provide those services starting July 1.
A very public dispute over that decision has escalated in recent months with ongoing legal salvos.
Southeast Anesthesiology filed a lawsuit in March, contending Atrium and Scope’s Wherry obtained its confidential information under false pretenses. A second filing in May sought to prevent Atrium and Scope from soliciting its nearly 90 physicians.
Robinson wrote in his Friday order that Southeast Anesthesiology failed to demonstrate the information constitutes as trade secrets or that “threatened or actual misappropriation is likely to occur.”
He adds that Southeast Anesthesiology did not show that it was likely to suffer irreparable harm without an injunction in place.
Atrium issued a statement saying it was pleased with the court’s ruling. It states the decision to sign with a new provider was in the best interest of patients.
Scope Anesthesia’s team of nearly 70 physicians is meeting with surgical staff and certified, registered nurse anesthetists to ensure a “seamless transition.”
“The court’s ruling also means that Mednax’s false and misleading smear campaign that tried to bully Atrium Health into entering into a new contract has failed,” Atrium's statement reads.
It add it respect the court’s decision that prevents Scope and Atrium Health from hiring Southeast Anesthesiology’s physicians for a temporary period.
“Given the caliber and experience of anesthesiologists we have been able to recruit, Atrium Health and Scope made clear at the hearing there are no current plans to try to hire Southeast Anesthesiology Consultant physicians,” it states.
Southeast Anesthesiology said it would release a statement later on Saturday but had not done so by 7:45 p.m.