Issue link: https://beckershealthcare.uberflip.com/i/1344616
59 GASTROENTEROLOGY Oncologists sue Maryland hospital over lost privileges By Kelly Gooch N ine cancer physicians at Anne Arundel Medical Center in Annapolis, Md., are suing the hospital after they say it fired them and refused to renew their privileges at the facility, the Capital Gazette reported Feb. 18. The oncologists, who filed the lawsuit in January, were em- ployed at Anne Arundel Physician Group, which is owned by the hospital's parent company, Luminis Health. On April 6, 2020, they presented a proposal to hospital leaders to leave Anne Arundel Medical Center to join Maryland Hematology Oncology, the state's largest inde- pendent medical oncology and hematology group. They said they saw the move as a way to escape "inadequate support of its cancer program," and alleviate financial concerns amid the COVID-19 pandemic, while still keep- ing hospital privileges that allow them to perform medical services at Anne Arundel Medical Center, according to the Capital Gazette. After presenting their proposal to the hospital, the on- cologists said they received a letter on April 23, saying their employment at Anne Arundel Physician Group was terminated, and that managers refused to renew their hospital privileges because they viewed the physicians as competition. According to the lawsuit, the proposal to join Maryland Hematology Oncology was viewed as a resignation by the hospital. The hospital contends the physicians were no longer eligible for privileges because the hospital entered an exclusive contract for oncology services with seven new oncologists. Tim Adelman, general counsel/chief legal counsel for Luminis Health told Becker's Hospital Review: "Luminis Health Anne Arundel Medical Center is proud of its award- winning cancer program, which has successfully served this community for nearly 40 years. We are pleased with the expertise of our seven new oncologists, as well as the continuity of care we have ensured for our patients as part of our nonprofit mission. This dispute started after nine oncologists resigned their employment to join a for-profit organization. They were not terminated and rejected our repeated efforts to retain them." In addition to the lawsuit, the oncologists filed an arbitra- tion claim to get out of their noncompete and nonsolicita- tion clauses with Anne Arundel Medical Center, according to the Capital Gazette. n A flaming hot start — Insights into PE investment in GI in 2021 By Eric Oliver The new year has coincided with a rapid increase in private equity investment in the gastroenterology space. e rumors that Miami-based Gastro Health could be for sale have dominated early conversations in the space. Interested buyers vary but a potential return could be in the range of $65 million in EBITDA and 15-times exit multiple. ere have been six deals so far: 1. January 2021: Dallas-based GI Alliance made the first deals of 2021, partnering with Cleburne (Texas) Endoscopy Center, Oak Lawn, Ill.-based GI Associates of Chicago and Dallas-based Digestive Health Associates of Texas. 2. Pinnacle GI Partners partnered with Lansing, Mich.-based provid- ers Michigan Gastroenterology Institute and Capitol Colorectal Surgery on Jan. 8, just slightly over a month aer its formation. 3. Investing firm Assured Healthcare Partners partnered with West Long Branch, N.J.-based Allied Digestive Health, it announced Jan. 13. 4. February 2021: Gastro Health acquired a practice in Hollywood, Fla., expanding its presence in the Fort Lauderdale, Fla., area. 5. Pinnacle GI Partners has deepened its roots in Michigan, partner- ing with East Lansing, Mich.-based Digestive Health Institute. 6. US Digestive Health partnered with four gastroenterology prac- tices: Pottstown (Pa.) Ambulatory Center, Brandywine Valley Endos- copy in Downingtown, Pa., e Center for GI Health in Sellersville, Pa., and Hillmont Gastroenterology in Flourtown, Pa. Here are some other notes on what could be in store: 1. GI's other platforms, United Digestive, PE Practice Solutions, the Peak Gastroenterology and Varsity Healthcare venture, and One GI, have not yet made deals. 2. Aer a booming end to 2020, the industry is expected to carry that momentum through 2021 and going forward, and the year could end with platform consolidations. n