The Kerlan-Jobe Orthopaedic Clinic, based in Los Angeles, is suing Cedars-Sinai, alleging the hospital schemed to appropriate its assets, reputation, patient base and intellectual property without compensation.
The $150 million lawsuit was filed in Los Angeles County Superior Court, Kerlan-Jobe said in a Jan. 16 news release shared with Becker's.
Cedars-Sinai and Kerlan-Jobe entered into a decade-long contract that expired Oct. 1 and has an 18-month winddown period, the lawsuit said. The hospital allegedly demanded that Kerlan-Jobe physicians bring patient services through Cedars-controlled facilities. Some former Kerlan-Jobe physicians allegedly cooperated while the ones who "exercised their contractual rights" were punished.
Cedars is accused of conspiring with Santa Monica Orthopaedic and Sports Medicine Group to prevent patients from scheduling with Kerlan-Jobe physicians while holding itself as Kerlan-Jobe and seizing control of key assets and branding.
As of Nov. 1, Kerlan-Jobe allegedly has no ability to bill for patient services, no control over its phone lines or websites and has three non-disqualified physicians to rebuild the practice.
"Cedars-Sinai, hiding behind its non-profit status, has orchestrated an underhanded scheme to crush Kerlan-Jobe, steal its assets, and prioritize profits over patient care," a Kerlan-Jobe spokesperson said in the release.
Kerlan-Jobe is asking for a jury trial. A spokesperson for Cedars-Sinai said the hospital would not comment on pending litigation.