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Lawsuit: Hospital Plotted Against Radiologists

April 23, 2013
Written by: , Filed in: Practice Management
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In a lawsuit, a western Pennsylvania hospital and its radiology services provider claim that another nearby hospital conspired with a property owner to eliminate competition and destroy the radiology business.

The lawsuit, filed last month, says James G. Manolakas has leased a building in McMurray, Pennsylvania, to Advanced Imaging for 17 years. Advanced is the only provider of radiology services to Monongahela Valley Hospital of Monongahela, Pennsylvania, according to a story about the lawsuit in the Observer-Reporter newspaper of Washington, Pennsylvania. The hospital, known locally as Mon Valley Hospital, subleases the building from Advanced. The lawsuit says Advanced is the hospital’s only radiology provider.

Manolakas and his business agent, Raymond A. Polk & Co., led Advanced to think that the lease would be extended, the lawsuit says. It says Advanced received correspondence on July 22, 2011, from Polk saying that a lease extension would be issued with rent recalculated to reflect increased costs for insurance, taxes, and utilities.

Instead, the lawsuit says, Manolakas and Polk agreed earlier this year to lease the property to The Washington Hospital of Washington. The lawsuit says The Washington Hospital doesn’t need the property for radiology services because it already offers such services at Waterdam Plaza, which according to Google Maps is a 10th of a mile away. Both hospitals and Advanced Imaging are in Washington County.

The lawsuit alleges:

Washington Hospital and Polk knew of the Mon Valley Hospital sublease and sought to eliminate Advanced Imaging and Mon Valley Hospital from the marketplace for the provision of radiological imaging services.

Advanced received notice on March 1 that its lease would not be renewed, the lawsuit says. The suit says such notice did not give Advanced enough time to remove its large, heavy imaging equipment. The lawsuit accuses The Washington Hospital of wanting to purchase the equipment at “fire sale” prices.

Spokespeople for both hospitals declined comment.

Related seminar: UCSF Radiology Review: COMPREHENSIVE IMAGING


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