Memorial Hermann Healthcare System and the physician group Stealth, both in Houston, have jointly agreed that Stealth will not take action in federal court against Memorial Hermann in a dispute centered on the January closure of Stealths Houston Town and Country Hospital.
Established in 2003, Stealths investor group of about 100 limited partnersmostly physiciansopened Houston Town and Country in 2005 and later sued the eight-hospital Memorial Hermann system in state court for allegedly pressuring insurance companies not to conduct business with 99-bed Town and Country.
In June, Memorial Hermann countered by filing a complaint against Stealth that said the group had refused to accept responsibility for its failure to become a financially viable venture prior to its closing. Stealths irresponsible allegations of unlawful and anti-competitive conduct by MHHS have necessitated the filing of this complaint for declaratory relief, according to the order filed in U.S. District Court in Houston.
While the joint dismissal filed Sept. 4 relates to federal action, the action does not affect any state-level claims. The state lawsuit is still pending against Memorial Hermann regarding the issue, according to Beth Sartori, a Memorial Hermann spokeswoman. (See a related story from this weeks Modern Physician. Registration may be required.) -- by Jessica Zigmond
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