Suffolk Superior Court Rules In Favor Of Whittier IPA, Inc. In Litigation Against Steward Health Care Network, Inc.

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Jun 30, 2015, 04:39 ET

BOSTON, June 30, 2015 /PRNewswire/ -- On June 29, 2015, the Suffolk Superior Court issued a ruling in favor of Whittier IPA, Inc. ("Whittier"), an association of doctors based in Newburyport, in litigation against Steward Health Care Network, Inc. ("Steward"). In September 2014, Whittier, represented by the law firm Shapiro Haber & Urmy LLP, filed an action entitled Whittier IPA, Inc. v. Steward Health Care Network, Inc., No. 2014-3029 in the Business Litigation Session of the Suffolk Superior Court. The complaint alleges, among other things, that in connection with Whittier's decision last year to affiliate with Beth Israel Deaconess Care Organization instead of Steward, Steward breached its contract with Whittier by depriving Whittier of millions of dollars in incentive payments earned pursuant to Payor contracts.

The Court's ruling yesterday denied Steward's motion to dismiss the complaint and allowed Whittier's cross-motion for partial summary judgment. The Court declared that "if incentive payments have been received by SHCN from Payors in respect of reporting periods during which Whittier was a member of SHCN, SHCN breached its contract with Whittier by failing to pay Whittier its pro rata share of those payments."

Whittier's President, Dr. Salman Ghiasuddin, said, "We are extremely pleased with the Court's ruling. The Court has decided in no uncertain terms that Whittier is entitled to the relief it is seeking in the lawsuit."

SOURCE Shapiro Haber & Urmy LLP