SOFHA sues Summit Medical over ‘scheme’ to destroy business

JONESBOROUGH, Tenn. (WJHL) — State of Franklin Healthcare Associates (SOFHA) is suing Knoxville-based Summit Medical Group (SMG) for up to $120 million, claiming SMG conspired with some SOFHA doctors in an effort to “destroy the value of Plaintiffs’ business as a going concern.”

The suit, filed Wednesday in Washington County Circuit Court, claims SMG breached non-disclosure agreements (NDAs) it had with SOFHA by communicating with doctors at SOFHA practices in Sullivan County and Southwest Virginia.

SOFHA, which opted to become employee-owned in early 2024, previously said a “small group of physicians” has made “false claims” about the group’s financial situation.

RELATED: SOFHA addresses physicians’ moves to leave group

A spokesman for SMG, meanwhile, told News Channel 11 the group has been trying “to help find constructive, long-term solutions to (SOFHA’s) ongoing physician and financial challenges” and said the claims are without merit…

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