A federal judge denied the bulk of Morgantown, W.Va.-based WVU Medicine's motion to dismiss in a lawsuit brought by Memorial Health System over an alleged "smear" campaign, The Parkersburg News and Sentinel reported Sept. 19.
The lawsuit, filed by Marietta, Ohio-based Memorial earlier this year, said WVU hospitals and others supported efforts by two executives and a physician to smear Memorial with unfounded claims of over-paying physicians in exchange for referring patients to Memorial. The multiyear federal investigation cost the system millions and had a negative impact on its ability to recruit physicians, the suit said.
WVU filed a motion to dismiss, claiming the issues had already been litigated in a settled case and the statute of limitations had passed. The judge rejected some arguments and said the rest should be decided at trial.