Physician practice sues Salem Health for $15M

Cardiology practice Oregon Health Center has filed a lawsuit against Salem (Ore.) Health, accusing the health system of defamation and monopolizing the cardiology market, according to local reports.

In June, Salem CEO and President Cheryl Nester Wolfe, RN, said in a newsletter that, in 2020, community cardiology practices began referring patients to Portland-based Oregon Health & Science University and Renton, Wash.-based Providence. Since then, Salem said it has lost more than 700 referrals. 

The change happened after a joint venture fell through between Salem Health and the independent cardiology practices, the newsletter said. 

"Oregon Heart Center does not share our vision of a successful, sustainable, local healthcare system that will meet the long-term needs of our community," said Ms. Nester Wolfe, adding that the system will not renew its contract with OHC when it expires in February 2025. 

Oregon Heart Center's lawsuit alleges Salem "resorted to intimidation tactics, false information and anticompetitive conduct in its effort to take over the market," according to the Portland Business Journal. The practice also accused the system of pressuring hospitalized patients to switch providers and limiting referrals to independent cardiologists, NBC affiliate KGW reported. 

A Salem Health spokesperson told Becker's that it is offering more cardiology services and is disappointed by the lawsuit.

Oregon Heart Center, which employs 12 cardiologists and clinicians, is seeking $15 million in damages from Salem Health, which employs more than 5,800 workers.

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