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Texas health care entities in business dispute

Business litigation often extends to companies that formerly did close business together, or were tied together in partnerships that may have originated with the companies being considered a part of one another. Some of these types of business disputes are simply to iron out a contract dispute, but in other cases, one or both companies may wish to part ways in much the same way as a personal divorce.

Such a dispute is under way with Texas Heart Institute and St. Luke’s Episcopal Hospital. Texas Heart has filed a motion requesting a separation from St. Luke’s hospital system. Currently Texas Heart, which is headquartered inside St. Luke’s, is financially dependent on the hospital system for its grants, research contracts, and other funding.

Texas Heart claims that their business relationship with St. Luke’s is no longer feasible, and that the hospital system has kept it from necessary funding to achieve its goals. In addition to looking into options with other entities, they’re also discussing business options with Catholic Health Initiatives based in Denver, which recently purchased St. Luke’s.

Spokespeople from St. Luke’s are dismissing the allegations against their partnership with Texas Heart Institute. The two health care entities are scheduled to meet in July at Harris County District Court to address these issues.

It would be important for the litigation between two health care companies to come to a swift and agreeable resolution, in order to continue the quality patient care they’re committed to. For this reason, such disputes are almost always represented by qualified corporate attorneys.

Source: Houston Business Journal, “St. Luke’s Texas Heart dispute headed to court,” Bayan Raji, June 19, 2013

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