The Detroit Medical Center and the Michigan AFSCME Council 25 have filed a lawsuit to stop the Barbara Ann Karmanos Cancer Institute from buying 285-bed St. John Detroit Riverview Hospital, according to a report from Crains Detroit Business, a sister publication to Modern Healthcare.
The system could be forced to close one of its hospitals and lose about $25 million a year if the deal goes through, according to the lawsuit, filed May 4 in Wayne County Circuit Court.
The lawsuit also claims Karmanos will, in effect, abscond with the medical centers cancer operations if the transaction is allowed to take effect. It asks the court to stop the transaction with St. John or allow it to void a previous contract in which the DMC turned over its cancer operations to Karmanos.
The AFSCME Council 25, which has joined the lawsuit, represents workers at St. John Riverview who could lose their jobs in a closure of the hospital.
Karmanos issued a statement Tuesday vowing to fight the lawsuit and saying the institute plans to continue honoring its commitments to the medical center.