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September 05, 2019 03:05 PM

Trinity Health, Anesthesia Associates reach settlement on lawsuits, non-competes

Jay Greene
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    Trinity Health Michigan and Anesthesia Associates of Ann Arbor PLLC have signed a new five-year agreement that ends dueling lawsuits against each other and frees A4 providers in Grand Rapids from their noncompete agreements.

    "The new agreement preserves a long-term relationship we have worked so hard to build," Gregory Bock, CEO of A4, said in a statement to Crain's. "It was important for us to find a way to continue to integrate our physicians in Trinity Health Michigan's network of care, given their strength and our mutual commitment to the quality of patient care."

    The agreement allows A4's anesthesiologists to continue treating patients at Trinity Health's five Southeast Michigan hospitals. Trinity had threatened not to renew contracts after June 2020.

    In exchange, A4 will allow its providers at Mercy Health St. Mary's hospital in Grand Rapids to choose where they practice, releasing them from noncompete agreements and "allowing them to continue to work and live in the community that they have been serving, including continued service at Trinity's Grand Rapids facility," Bock said.

    Trinity Health is in the process of transitioning its anesthesia services to another model, the joint statement said. Last week, St. Mary's signed an agreement with Anesthesia Practice Consultants PC to take over from A4 after its contract expired Aug. 31. APC has 124 physicians and 80 CRNAs and certified anesthesiologist assistants and also serves Spectrum Health hospitals.

    "A4 and Trinity Health Michigan have worked together for decades, in what has been a very good and productive relationship," Rob Casalou, president and CEO of Trinity Health Michigan, said in a statement. "We both recognize the strength and commitment to the quality of patient care we each offer, and we are focused on moving forward to continue providing high quality and stable services to our patients."

    Trinity Health Michigan operates eight hospitals in Michigan, including the five hospitals of St. Joseph Mercy Health System in Ann Arbor, Chelsea, Howell, Livonia and Pontiac, and the three Mercy Health hospitals in Grand Rapids and Muskegon.

    Nationally, Livonia-based Trinity Health operates 93 hospitals in 22 states and has annual operating revenue of $18.3 billion.

    Anesthesia Associates of Ann Arbor was established in 1968 and is now owned by Siromed Physician Services, one of the largest providers of anesthesia and pain-management services in Michigan with more than 120 anesthesiologists.

    A4 provides services to 11 hospitals, including four Beaumont Health hospitals in Wayne, Dearborn, Trenton and Taylor, six ambulatory surgery centers and four chronic pain-management clinics.

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