SCHENECTADY, N.Y. (NEWS10) — Before 2020, Cardiology Associates of Schenectady (CAS) was an independent practice whose doctors had worked with Ellis for decades. In 2021, St. Peter’s acquired CAS, making the 27 cardiologists St. Peter’s employees. They continued treating patients and performing procedures at Ellis under a Professional Services Agreement.
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“In the agreement with St. Peter’s, it said that if the contract was ever terminated, that Ellis would be allowed to contact the cardiologist and employ them at Ellis. Unbeknownst to us, the St. Peter’s put non-compete language in their employment agreements, which prevents us from going in and having contact with them to employ them,” said President and CEO of Ellis Medicine Paul Milton.
Milton says the non-compete language could prevent those doctors from working at Ellis. He doesn’t know why St Peter’s wanted to terminate the agreement, but they did.
There were also conversations about a potential merger between the two, but those talks ended in June. Milton believes these non-competes violate the original agreement.
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“Our belief is that the overarching agreement, the Professional Physician Services Agreement between Ellis and St. Peter’s, supersedes any other employment agreement,” said Milton. “So we’re suing them over that.”…