Franciscan Alliance sued by Indy physician for breach of contract, interfering in practice
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An Indianapolis doctor is suing the parent of Franciscan Health, claiming the hospital system put him out of business by directing patients away from his practice, terminating his office lease, and failing to meet its financial obligations on two joint medical ventures.
Dr. Greg Hardin, an orthopedic surgeon who specializes in sports medicine, claims that Mishawaka-based Franciscan Alliance engaged in conduct harmful to his practice over the course of several years.
He filed suit in Indiana Commercial Court this month, claiming a breach of fiduciary duties, dereliction and waste, intentional interference, and breach of contract.
Hardin is the owner of the Center for Orthopaedic Surgery & Sports Medicine PC, with an office located on Emerson Avenue, just south of Franciscan Health Indianapolis Hospital. A call to the office on Monday was answered by a recorded greeting and referral to voicemail.
A spokesman for Franciscan Alliance did not have an immediate comment when reached by email Monday. The hospital system has yet to file a response to the complaint in the court docket.
According to Hardin’s complaint, his practice and Franciscan Alliance were 50-50 partners in two joint ventures, South Indy MRI & Rehab Services LLC and South Emerson Surgery Center LLC.
Hardin said Franciscan repeatedly refused to pay its share of operating expenses incurred by the ventures. The health system prematurely terminated his orthopedic practice’s office lease effective Dec. 31, 2023 “with full knowledge that …the magnetic resonance imaging machine is leased at the office through December 31, 2024,” the complaint said.
He claims that Franciscan terminated the office lease to make the space available to another medical practice, Indianapolis Neurosurgical Group, doing business as Goodman Campbell Brain and Spine.
Hardin also claimed that Franciscan stopped, limited and/or redirected patient referrals away from Dr. Hardin’s practice and the MRI venture “in an effort to undermine” Hardin and the joint venture.
Since creating the MRI joint venture, Franciscan has entered into a new joint venture or partnership with Thomas A. Brady Sports Medicine Center, doing business as Forte Sports Medicine and Orthopedics (formerly known as Methodist Sports Medicine).
Franciscan has refused to allow the MRI venture with Hardin into its Epic system for record documentation and patient record preservation, the suit said. Franciscan has also refused to market or promote the MRI venture “while at the same time has aggressively marketed and promoted its new joint venture and/or partnership with Forte.”
Similarly, Franciscan engaged in harmful conduct for several years on the surgery center joint venture, the complaint said, by directing patients away from the practice.
Franciscan also suspended Hardin’s hospital privileges for an undisclosed period and removed the physician and his colleague from Franciscan’s medical records system and the online physicians’ roster, according to the lawsuit.
Due to Franciscan’s conduct, the surgery center venture experienced a nearly 80% decrease in patient volumes and revenues, Hardin alleges. Both joint ventures are now unable to operate profitably and have become insolvent, the complaint said.
Hardin claims that he and his practice have suffered unspecified damages as a direct result of Franciscan’s conduct and its “breach of fiduciary duties.” He is seeking “disgorgement of profits” as a result of Franciscan’s comments.
Hardin is seeking a jury trial and unspecified damages.