Los Angeles-based Cedars-Sinai is facing allegations of appropriating the Kerlan-Jobe Orthopaedic Clinic's reputation and assets without compensation in a $150 million lawsuit.
The lawsuit, filed in Los Angeles County Superior Court, accuses the hospital of conspiring with Santa Monica Orthopaedic and Sports Medicine Group, Kerlan-Jobe said in a Jan. 16 news release shared with Becker's.
Cedars and Kerlan-Jobe were in a contract that expired on Oct. 1, and when it was executed the hospital allegedly demanded that the orthopedic group's physicians bring patient services through Cedars' facilities.
The hospital is accused of preventing patients from scheduling with Kerlan-Jobe physicians while holding itself as Kerlan-Jobe and unlawfully gaining financial windfall by using the practice's 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, the release said.
"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.