Pediatric Nephrology Associates v. Variety Children's Hospital

226 F. Supp. 3d 1346, 2016 U.S. Dist. LEXIS 180420, 2016 WL 8379209
CourtDistrict Court, S.D. Florida
DecidedDecember 29, 2016
DocketCase No. 1:16-cv-24138-UU
StatusPublished
Cited by1 cases

This text of 226 F. Supp. 3d 1346 (Pediatric Nephrology Associates v. Variety Children's Hospital) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pediatric Nephrology Associates v. Variety Children's Hospital, 226 F. Supp. 3d 1346, 2016 U.S. Dist. LEXIS 180420, 2016 WL 8379209 (S.D. Fla. 2016).

Opinion

ORDER

Ursula Ungaro, UNITED STATES DISTRICT JUDGE

THIS CAUSE comes before the Court upon Defendants’ Partial Motion to Dismiss or for More Definite Statement of Plaintiffs First Amended Complaint. D.E. 27.

THE COURT has considered the Motion, the pertinent portions of the record and is otherwise fully advised in the premises.

FACTUAL ALLEGATIONS

The following facts are taken from Plaintiffs First Amended Complaint. D.E. 19.

A. The Parties

Defendant, Pediatric Specialty Group, Inc. (“PSA”), is a pediatric physician practice group that was formed in 2015 and is owned by Defendant, Variety Children’s Hospital, formerly known as Miami Children’s Hospital, currently doing business as Nicklaus Children’s Hospital (the “Hospital”). Id. ¶ 16. Defendant, Narendra Kini, M.D. (“Dr. Kini”) and Defendant, Leonard Feld, M.D. (“Dr. Feld”), controlled PSA on behalf of both the Hospital and PSA in an attempt to take control of and monopolize the pediatric physician groups that were practicing at the Hospital. Id.

As a part of its strategy to control the pediatric physician groups at the Hospital, PSA recruited existing physician groups at the Hospital. Id. ¶ 17. If the physician groups refused to join PSA, the groups would be subjected to aggressive punishments by PSA. Id. In addition, the Hospital and PSA instituted a policy under which PSA-employed physicians are directed to refer their patients only to other PSA-employed physicians. Id. ¶ 18. For example, the practice group that handles the hospital’s emergency room has joined PSA, which means that every patient who comes into the Hospital for treatment through the emergency room is automatically referred to a PSA-employed specialist depending on the treatment that is needed. Id.

Plaintiff, Pediatric Nephrology Associates of South Florida (“PNASF”), has been the pediatric nephrology practice group at the Hospital for over twenty (20) years. Id. ¶ 19. At the time PSA initiated discussions with PNASF to join PSA, PNASF’s partners consisted of Plaintiffs, Anselmo Cepero, M.D. (“Dr. Cepero”), Ana Paredes, M.D. (“Dr. Paredes”), and Defendant, Felix Ramirez-Seijas, M.D. (“Dr. Ramirez”). Id. Dr. Cepero has been practicing pediatric nephrology for over thirty (30) years, and in January 2016, he was elected by his peers to serve as the Hospital’s Pediatric Nephrology Division Director. Id. ¶ 20. Prior to his termination by the Hospital, he served as the Medical [1350]*1350Director of Urodynamics at the Hospital’s Center for Enuresis & Urinary Disorders. Id. Dr. Paredes has also been practicing pediatric nephrology for over thirty (30) years, was the Director of Renal Research at the Hospital, and was consistently ranked as the best teacher by the residents practicing at the Hospital. Id. ¶ 21, Prior to her termination by the Hospital, Dr. Paredes served as the Program Director of the Hospital’s Dialysis Center. Id.

B. PSA’s Initial Discussions with PNASF

In late August 2015, Dr. Feld requested a meeting with the partners of PNASF in an attempt to recruit the PNASF physicians to join PSA. Id. ¶22. Dr. Ramirez entertained PSA’s recruiting efforts, while Dr. Cepero and Dr. Paredes remained inclined to continue their partnership with PNASF. Id. ¶ 23. Dr. Cepero and Dr. Pa-redes agreed to speak with PSA regarding the potential association; however, before doing so, they signed confidentiality agreements with PSA to ensure that them partnership’s proprietary information would remain confidential and protected. Id.

By October 2015, without a vote of the partnership and without his partners’ consent, Dr. Ramirez agreed to join PSA and created a pediatric nephrology practice group that would compete with his own partnership, PNASF. Id. ¶ 24. On October 16, 2015, Dr. Feld sent emails to colleagues across the country and asked them to post a job opening for a pediatric nephrologist to join the Hospital and PSA’s rival practice group. Id. ¶ 25. Dr. Ramirez was copied on those e-mails, and he subsequently participated in the recruitment efforts; however, Dr. Cepero and Dr. Paredes were excluded from these e-mails. Id.

In advertising this position, Dr. Feld took PNASF’s confidential business information, including the number of its patient visits and patients under special treatment, and represented this information as PSA’s own accomplishments in order to make the position more attractive. Id. ¶ 26. Dr. Feld obtained this information from Dr. Ramirez. Id.; D.E. 19-1. In addition, Dr. Ramirez held himself out as the new head of the rival practice group. Id. ¶ 27. In the e-mailed job listing from October 16, 2015, the Hospital and PSA indicated that the new practice group is “under the direction of Felix Ramirez, M.D.” Id.; D.E. 19-2.

C. Dr. Ramirez’s Disassociation from PNASF

As Dr. Cepero and Dr. Paredes continued to resist PSA’s efforts to acquire their practice, the Hospital and PSA increased pressure on Plaintiffs. Id. ¶ 28. Dr. Ramirez told Dr. Cepero and Dr. Paredes that his new pediatric nephrology practice group would directly compete with PNASF, and Dr. Feld and Dr. Kini also set up a series of meetings with Plaintiffs to force Dr. Cepero and Dr. Paredes to submit under similar threats. Id. However, once Dr. Cepero and Dr. Paredes learned that Dr. Ramirez was involved in the creation and recruitment for the rival practice group, both doctors gave notice to Dr. Ramirez that he had been disassociated from the partnership as a result of this conduct. Id. ¶ 29.

In the meantime, Hospital and PSA continued their campaign to retaliate against Dr. Cepero and Dr. Paredes and compete with PNASF. Id. ¶ 31. Dr. Kini and Dr. Feld began instructing other physicians to stop referring patients to Dr. Cepero and Dr. Paredes, and to instead, refer patients to Dr. Ramirez and PSA. Id. ¶ 32. Dr. Kini, Dr. Feld, and Dr. Ramirez concocted a scheme to evict the partnership from the Hospital on the ground that the partnership had dissolved. Id. The Defendants contended in papers filed in state court [1351]*1351that Dr. Cepero and Dr. Paredes were the partners who chose to leave the partnership, when it was Dr. Ramirez who was asked to leave after he announced that he was forming a competing practice. Id.

D. The Hospital’s Breach of Contract

In a letter sent by Dr. Kini, the Hospital terminated the Teaching Services Agreement that it had signed with PNASF, which provided a source of professional and financial benefits to Dr. Cepero and Dr. Paredes. Id. ¶ 33; D.E. 19-3. Dr. Kini failed to renew Dr. Paredes’ contract as Program Director of the Dialysis Center, a position that she held since 2006, Id. ¶ 34; D.E. 19-4. In January 2016, Dr. Cepero was elected by his peers to serve as the Hospital’s Pediatric Nephrology Division Director; however, he had not been paid for his work as the Division Director, and Dr. Kini and Dr. Feld attempted to undermine Dr. Cepero’s position by creating a rival position for Dr. Ramirez as “Section Chief’ of PSA’s nephrology practice. Id. ¶ 35.

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Bluebook (online)
226 F. Supp. 3d 1346, 2016 U.S. Dist. LEXIS 180420, 2016 WL 8379209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pediatric-nephrology-associates-v-variety-childrens-hospital-flsd-2016.