WHEATON, Ill.-Marianjoy Rehabilitation Hospital and Clinic bought a 25% equity stake in a network of 53 independent rehabilitation providers. Terms weren't disclosed. Marianjoy, a 107-bed specialty hospital, adds neurological services to the offerings of Chicago-based Rehabilitation Services Network. RSN, a 5-year-old independent practice association, contracts with HMOs, PPOs and workers' compensation plans to provide physical and occupational therapy services. It's in the process of offering stock to its other members, as well. Currently serving northeastern Illinois and southeastern Wisconsin, the IPA plans to expand to provide a full range of rehabilitation services in Illinois, Indiana and Wisconsin.
KOKOMO, Ind.-Dallas-based Spectrum Comprehensive Care announced it will open a 19-bed long-term acute-care hospital in space leased from Saint Joseph Hospital and Health Center in Kokomo. The facility is scheduled to open in early September, following renovations estimated to cost $310,000. The company's patients typically have multiple complications and require hospitalization for more than 25 days.
SIOUX FALLS, S.D.-Sioux Valley Hospital faces a lawsuit over its lease of 54-bed Mid-Dakota Hospital in Chamberlain, S.D. A member of Mid-Dakota's medical staff, Morton D. Willcutts Jr., M.D., alleges that Sioux Valley participated in a campaign to cripple Mid-Dakota financially in order to dislodge Quorum Health Resources from a management contract and give control to Sioux Valley. Also named as defendants are two physicians on the Mid-Dakota board and a Brule County, S.D., attorney. The complaint, filed in U.S. District Court, alleges the defendants orchestrated a campaign to discredit Brentwood, Tenn.-based Quorum, including a boycott of the hospital, and forced the Mid-Dakota board to change its composition. According to the complaint, Mid-Dakota prematurely terminated a five-year management agreement with Quorum at a penalty of more than $100,000 and signed a 10-year lease agreement with Sioux Valley in 1995. Willcutts claims the defendants used their influence to drive away his patients because he was aligned with Quorum. He has requested damages be awarded to himself and Mid-Dakota Hospital under various South Dakota business statutes and federal antitrust and tax laws. A spokeswoman for Sioux Valley declined to comment, citing the litigation.