Workplace

July 24, 2013

Prime Healthcare responds to lawsuit

The new owner of Providence Medical Center and St. John Hospital said that the assertions by the Sisters of Charity of Leavenworth Health System “are not supported by the facts or the law” and that the lawsuit was filed after Prime’s “best efforts to amicably collaborate” with Sisters of Charity, a Denver-based hospital company.

Prime Healthcare, the California-based hospital company that bought two Kansas City area hospitals earlier this year, said Wednesday that a breach of contract lawsuit filed against it is meritless.

The company was sued by the Sisters of Charity of Leavenworth Health System, which sold Providence Medical Center and St. John Hospital. The lawsuit alleges that Prime has not met sale contract agreements concerning patient billing.

In a statement released Wednesday, Prime said that the assertions by SCLHS “are not supported by the facts or the law” and that the lawsuit was filed after Prime’s “best efforts to amicably collaborate” with Sisters of Charity, a Denver-based hospital company.

The statement said Prime has paid all invoices in full and has not violated any intellectual property law, as the litigation alleges.

Without providing more specific details, Prime said that because of Sisters of Charity’s “uncooperative behavior, we will be shortly unveiling a new plan with our employees to accelerate transitioning all services” to Providence and St. John.

Spokemen for Sisters of Charity said they do not comment on pending litigation.

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