Profession

Iowa suit accuses system of name infringement

Physicians say the name that Covenant Health System chose for its new clinic is causing confusion for patients and vendors.

By Mike Norbut — Posted Dec. 12, 2005

Print  |   Email  |   Respond  |   Reprints  |   Like Facebook  |   Share Twitter  |   Tweet Linkedin

An Iowa multispecialty group is suing a local hospital system, accusing it of infringing on the group's trade name and using other tactics to try to drive the physicians out of business.

In a lawsuit filed in November, Waterloo-based Cedar Valley Medical Specialists P.C. is asking the court to stop Covenant Health System Inc., which operates three hospitals in the area, from naming a new clinic the Greater Cedar Valley Medical Center. The 50-physician group said the name for the yet-to-be opened clinic is too similar to trade names they have already registered with the Iowa secretary of state.

Cedar Valley Medical Specialists CEO Gil Irey said the group heard about Covenant's naming plans and asked the system not to use the name. The physician group also registered the name "Cedar Valley Medical Center" with the state on July 1, just days before Covenant registered "Greater Cedar Valley Medical Center."

"We feel it's been confusing for our patients and our vendors," Irey said. "We are not seeking monetary damages. We want them to quit using our name." Irey declined to comment on the financial impact Covenant's alleged actions have had on the group, although the lawsuit claims if a court allows the actions to continue, it could lead to "irreparable harm."

Covenant spokesman Chris Hyers declined to comment on the lawsuit, citing corporate policy not to discuss pending litigation.

The physician group's lawsuit alleges the hospital system also used other tactics to try to drive the practice out of business, including altering call schedules, paying excessive salaries to some Covenant-employed physicians, upcoding charges for services and withholding some admitting privileges for Cedar Valley specialists.

The lawsuit alleges that in 2002 Covenant paid an orthopedic surgeon and a gastroenterologist more than $2 million each, much higher than median salaries for those specialties. The high salaries are not consistent with the hospital system's nonprofit status, the lawsuit states. Irey said Cedar Valley's lawsuit was not related to a federal investigation into Covenant's salaries for some of its doctors.

Glenn Baly, a spokesman for the U.S. Dept. of Health and Human Services' Office of Inspector General, confirmed federal subpoenas were issued in September to two Iowa health insurers seeking information about Covenant's payment practices.

Hyers said the hospital system has not been contacted by federal officials regarding the issue.

Back to top


ADVERTISEMENT

ADVERTISE HERE


Featured
Read story

Confronting bias against obese patients

Medical educators are starting to raise awareness about how weight-related stigma can impair patient-physician communication and the treatment of obesity. Read story


Read story

Goodbye

American Medical News is ceasing publication after 55 years of serving physicians by keeping them informed of their rapidly changing profession. Read story


Read story

Policing medical practice employees after work

Doctors can try to regulate staff actions outside the office, but they must watch what they try to stamp out and how they do it. Read story


Read story

Diabetes prevention: Set on a course for lifestyle change

The YMCA's evidence-based program is helping prediabetic patients eat right, get active and lose weight. Read story


Read story

Medicaid's muddled preventive care picture

The health system reform law promises no-cost coverage of a lengthy list of screenings and other prevention services, but some beneficiaries still might miss out. Read story


Read story

How to get tax breaks for your medical practice

Federal, state and local governments offer doctors incentives because practices are recognized as economic engines. But physicians must know how and where to find them. Read story


Read story

Advance pay ACOs: A down payment on Medicare's future

Accountable care organizations that pay doctors up-front bring practice improvements, but it's unclear yet if program actuaries will see a return on investment. Read story


Read story

Physician liability: Your team, your legal risk

When health care team members drop the ball, it's often doctors who end up in court. How can physicians improve such care and avoid risks? Read story

  • Stay informed
  • Twitter
  • Facebook
  • RSS
  • LinkedIn