Physicians from St. Luke's Episcopal Health System in Houston have filed a motion to halt the system's sale to Denver-based Catholic Health Initiatives, according to a Houston Business Journal report.
St. Luke's announced last week that it would sell to CHI, but on April 19, physicians filed a motion in the Court of Appeals of Texas to bar the sale until their petition for a separate lawsuit is heard in Harris County Court, which is scheduled for Sept. 16.
That trial date was set in response to physicians' previous allegations that the partnership that owns a St. Luke's hospital breached its contract with physicians who bought into the partnership.
Update: St. Luke's general counsel, Ken Broughton, released the following statement with Becker's Hospital Review on the physicians' motion.
"The Plaintiffs in the pending case of Shatish Patel, et. al. vs. St Luke's Sugar Land Partnership, LLP, et. al. have filed an Emergency Motion for Temporary Relief in the First Court of Appeals asking the Court 'to enjoin the sale or transfer of the St. Luke's Sugar Land Hospital until after the disposition of [Plaintiffs] pending interlocutory appeal from the trial court's denial of a temporary injunction.' The Plaintiffs' motion is premised upon their inaccurate and flawed assumption that the St Luke's Sugar Land Hospital is being sold or transferred.
The fact is, the ownership of the St Luke's Sugar Land Hospital is totally unchanged by the transaction. The transaction is between the Episcopal Diocese of Texas and Catholic Health Initiatives. In that transaction, CHI will be substituted into the position currently held by the Episcopal Diocese of Texas as the member of the non-profit St Luke's Episcopal Health System Corporation. In everyday layman's terms, one could compare this transaction to one where a company gets a new shareholder. This transaction does not impact the assets or the liabilities of any of the parties being sued by the Plaintiffs and will have no impact on the jurisdiction of Texas courts over the relief being requested by the Plaintiffs."
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St. Luke's announced last week that it would sell to CHI, but on April 19, physicians filed a motion in the Court of Appeals of Texas to bar the sale until their petition for a separate lawsuit is heard in Harris County Court, which is scheduled for Sept. 16.
That trial date was set in response to physicians' previous allegations that the partnership that owns a St. Luke's hospital breached its contract with physicians who bought into the partnership.
Update: St. Luke's general counsel, Ken Broughton, released the following statement with Becker's Hospital Review on the physicians' motion.
"The Plaintiffs in the pending case of Shatish Patel, et. al. vs. St Luke's Sugar Land Partnership, LLP, et. al. have filed an Emergency Motion for Temporary Relief in the First Court of Appeals asking the Court 'to enjoin the sale or transfer of the St. Luke's Sugar Land Hospital until after the disposition of [Plaintiffs] pending interlocutory appeal from the trial court's denial of a temporary injunction.' The Plaintiffs' motion is premised upon their inaccurate and flawed assumption that the St Luke's Sugar Land Hospital is being sold or transferred.
The fact is, the ownership of the St Luke's Sugar Land Hospital is totally unchanged by the transaction. The transaction is between the Episcopal Diocese of Texas and Catholic Health Initiatives. In that transaction, CHI will be substituted into the position currently held by the Episcopal Diocese of Texas as the member of the non-profit St Luke's Episcopal Health System Corporation. In everyday layman's terms, one could compare this transaction to one where a company gets a new shareholder. This transaction does not impact the assets or the liabilities of any of the parties being sued by the Plaintiffs and will have no impact on the jurisdiction of Texas courts over the relief being requested by the Plaintiffs."
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