Black-owned radiology practice alleges Maryland system violated bidding rules

A Black-owned radiology practice is suing the University of Maryland Medical System alleging unfair and discriminatory bidding practices, The Baltimore Sun reported Aug. 19.

The lawsuit, filed July 31 in Prince George's County Circuit Court, lists Capitol Radiology in Laurel, Md., as the plaintiff. Baltimore-based University of Maryland Medical System, Largo, Md.-based UM Capital Region Health, Laurel-based Advanced Radiology at Capital Region, and Los Angeles-based RadNet are named as defendants.

The lawsuit alleges UMMS awarded RadNet with a joint-venture, sole-source partnership to build a new outpatient radiology center on the medical center's Laurel campus — 50 yards away from the doors of Capitol Radiology, a Black-owned radiology facility. 

Doing so violated requirements that UMMS conduct procurement activities consistent with minority purchasing standards applicable to Maryland government agencies, and not discriminate based on race, the lawsuit alleges. 

"UMMS did not offer Capital Radiology an opportunity to bid on a contract for the provision of outpatient radiology services on the Laurel campus, even though it had been exclusively providing such services at that exact location for nearly 20 years," the lawsuit said.

Capital Radiology further contends that the medical system excluded Capitol Radiology "precisely because it was black- and female-owned, and therefore likely to prevail under State bidding rules." The lawsuit also claims UMMS entered into the joint venture agreement with RadNet to obtain patient referrals; and that the UMMS-RadNet joint venture is in breach of the agreement by which Capitol Radiology purchased the Laurel facility from RadNet.

The University of Maryland Medical System and RadNet had not filed responses to the lawsuit as of Aug. 15, according to The Baltimore Sun. Brian Moffett, an attorney from the Baltimore-based firm Miles and Stockbridge, which is representing RadNet in the lawsuit, declined to comment to the publication on the pending litigation.

UM Capital Region Health, which operates the Laurel medical campus in question in the complaint, shared the following statement with Becker's: "While we cannot comment on pending litigation, the University of Maryland Capital Region Health is a mission-driven organization focused on providing high-quality, safe and compassionate care to residents of Prince George's County. In general, expanding and enhancing access to care and increasing health care options for the community, giving individuals choice and flexibility, is part of our strategic approach and among our top priorities."

Capitol Radiology seeks preliminary and permanent injunctive relief, compensatory damages, treble and punitive damages, attorneys' fees and costs.

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