A judge in Detroit blocked the Barbara Ann Karmanos Cancer
Institutes plans to occupy the St. John Detroit Riverview Hospital,
which St. John Health System is in the process of closing.
The Detroit Medical Center sued to stop Karmanos, which in 2004 acquired
DMC cancer facilities it had been managing and promised to maintain a
cancer hospital on the six-hospital systems downtown campus. Karmanos
decision to buy Riverview instead violated the agreement, the DMC argued.
Wayne County Judge Gershwin Drain began hearing testimony July 2 and July
5 took a field trip to observe the DMC site. Mike Duggan, the DMCs
president and chief executive officer, reportedly told Drain that losing
Karmanos prestige and lucrative draw would be a stake in our heart.
What (Drain) said was the contract between DMC and Karmanos required
Karmanos to keep its cancer hospital on DMCs main campus and that moving
to Riverview would be a unilateral breach of the contract, Duggan said
in a phone interview after the judge ruled. Unfortunately it took two
months of litigation to resolve that and thats where we are.
Karmanos, meanwhile, has not decided whether to appeal the decision,
spokeswoman Patricia Ellis said in a written statement. We have a
different understanding of the agreement and felt we had a strong case,
Ellis said. -- by Gregg