ESCONDIDO: PPH accuses imaging services group of interfering in bid process
District and Valley Radiology reached impasse in partnership dispute earlier this year
By ANDREA MOSS - Staff Writer | ∞
ESCONDIDO ---- Palomar Pomerado Health officials are publicly accusing a local radiology group of interfering with the hospital district's attempts to get price quotes from other radiologists interested in taking over imaging services provided to district patients.
The head of the group ---- Valley Radiology Consulting Inc. ---- denied the claim Friday.
"From our point of view, it was completely baseless," said Dr. Gary Spoto, president of the group.
The allegation is the latest development in a dispute that has been building for several months between the longtime partners.
Bruce Krider, chairman of Palomar Pomerado Health's Board of Trustees, and hospital district attorney Janine Sarti went public with the district's claim during this week's board meeting, saying Valley Radiology's alleged action amounted to illegal interference in the public bidding process.
A public agency supported by taxpayers, Palomar Pomerado owns and operates Palomar Medical Center in Escondido and Pomerado Hospital in Poway.
Valley Radiology has provided ultrasound, computed tomography, magnetic resonance imaging, neuroradiology and other imaging services to the district's patients for more than 30 years.
Together, the district and the radiology company operate three imaging centers: Parkway Radiology Center in Escondido and Gateway Radiology Center and Pomerado Imaging in Poway.
In May, the district notified Valley Radiology that Palomar Pomerado plans to terminate its contract with the group at the end of the year. Hospital officials characterized the move as a cost-cutting measure. They also have said the partnership failed to meet the district's strategic goals.
Palomar Pomerado subsequently invited other companies to submit contract bids to the district.
On Friday, Sarti said district officials learned recently from other radiology groups that Valley Radiology members had tried to discourage them from bidding on the new contract.
Krider said two radiology groups dropped out of the bid process after they talked to members of Valley Radiology.
Palomar Pomerado sent Valley Radiology a "cease and desist" letter last week. In the letter, written by Sarti, the district characterizes the group's alleged action as wrongful coercion and "interference with prospective economic advantage."
Spoto said its members spoke only with colleagues and radiology groups that sought information from the group. Each of the conversations stuck to facts and no one was asked not to submit a bid, he said.
The group's attorney sent Sarti a response in a letter Tuesday that denies any wrongdoing.
"We have nothing to hide," Spoto said. "We just want to get the truth out."
The district's decision to terminate its contract with the radiology group came after months of negotiations aimed at resolving differences of opinion about the way the partnership should operate reached an impasse.
Four Valley Radiology physicians urged the district's board to reconsider the action during the board's July meeting.
Gerald Bracht, chief administrative officer of Palomar Medical Center, oversaw the request for bids on a new contract. He said Friday that Valley Radiology was one of seven companies that responded.
All the responses will be given to a committee that will begin reviewing the bids Aug. 18 in an effort to identify which should receive further consideration at a future meeting, said Bracht.
Contact staff writer Andrea Moss at (760) 739-6654 or amoss@nctimes.com.
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Fool on the Hill wrote on Aug 16, 2008 1:09 AM:Just a classic example of the pot calling the kettle black. It takes one to know one. All cliches aside, I get the picture but you probably don't. Isn't it pathetic that something as vital as healthcare is being jerked around by these clowns?
Working With Covert wrote on Aug 16, 2008 6:56 AM:Let me guess. Other groups asked Valley Radiology what is like to work with PPH CEO Michael Covert. Valley Radiology gave its opinion which, of course, was negative. Now PPH wants to sue Valley Radiology. Looks like PPH wants to waste the money it gets from the taxpayers on litigation!!!
Hospital of the Future or of Pain wrote on Aug 16, 2008 7:05 AM:Layoffs and litigation is an indication of the desparate financial circumstances of PPH. The new hospital is turning out to be so expensive, that PPH is desparate to suck in as much money as it can. The 'partnership failed to meet the district's strategic goals' means that PPH needs more money from the radiology business to cover the big cost overruns on the new hospital. Likewise, 'interference with prospective economic advantage' means that none of the bids were lucrative enough to make a dent in covering the big cost overruns on the new hospital. Keep tuned. More is coming from PPH!
Seen enough wrote on Aug 16, 2008 8:46 AM:PPH is not a reliable partner. Their credibility is shot. Please privatize these hospitals asap before all of the competent physicians have left.
wondering wrote on Aug 16, 2008 8:53 AM:Ms. Moss, I must ask ..., are you a summer intern?
Wouldn't it be important to also report that a lawsuit has been filed by a Valley Radiological partner against the hospital's CEO, Michael Covert...
Report Card wrote on Aug 16, 2008 1:37 PM:So this is what Covert and the board get to talk about at their meetings??? Since the board was supposed to do an evaluation of the their own performance at this meeting, I would like to know how that went. I'm sure they gave themselves very high scores since many of them are up for reelection in just a few months. The timing of this is ridiculous. If someone is running for reelection would they dare give themselves anything other than an "excellent" rating? Time for a change. Now.
WiseGuy wrote on Aug 16, 2008 5:50 PM:Are the replacement radiologist going to be qualified to read the images correctly or will brain tumors go un-noticed by the half price replacement guys? Nice Mike, nice. When were you leaving again?
escondeter wrote on Aug 16, 2008 8:48 PM:how about doing an update story on the lawsuit that is going on between valley radiology and pph? Also I think north county times should investigate Coverts past and do an article on that. i hear its pretty interesting. if rhe board members are up for re electiin lets vote them out. i think the board needs a change of venue.
Local wrote on Aug 17, 2008 4:26 AM:It doesn't take an astro-nautical engineer to realize that the upper echelons(sp) of NCT have a too-close connection to PPH. Real dialogue on this taxpayer-subsidized deal is taboo. It will be a small miracle if THIS post sees the light of day. PS, But that's OK because I learn more from what you choose to censor!!
independent thinker wrote on Aug 17, 2008 8:56 AM:to seen enough,
Yes, let's privatize to someone like Sharp, who has been doing things without involving their district board... PPH and its board is doing a lot to make health care as safe as possible here in North County.
The Big Picture wrote on Aug 17, 2008 10:10 AM:Throughout history, great thinkers have always been violently challenged by mediocre minds.
So, we should not feel that the mouthy ones here are any different from the mediocre morons of the past. There will always be that percentage who can only feel like they have some shread of personal worth by tearing down others. Some things will never, never change; but hey!, it's normal.
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