AmSurg Awarded Full Arbitration Award Amount in Physician Group Dispute

We represented AmSurg Holdings, Inc. in a dispute with a group of physicians seeking to invalidate a non-compete provision that was a material feature of a highly profitable surgery center partnership in California. The dispute began when the surgery center lost its lease, and the parties were required to find a replacement location. The physicians tried to leverage the lease termination as a way to cut AmSurg out of the business, and the surgery center was ultimately forced to close as a result of their actions. The physicians then sued to get free of the non-compete obligations. Following months of contentious discovery, the parties had a two-week arbitration hearing in Los Angeles. The arbitration panel issued its decision in March 2016, ruling in AmSurg’s favor on every claim. The panel also awarded AmSurg $9 million in damages. In late 2016, the physicians filed two federal lawsuits seeking to block or overturn the arbitration panel’s decision. We beat back each of those efforts, and, in mid-2017, the federal court in Nashville affirmed the arbitration award in full. The federal court also awarded pre- and post-judgment interest, which added an additional $500,000 to AmSurg’s recovery. The client is very pleased with the result, which will serve as valuable precedent in similar disputes in the future. AmSurg Holdings, Inc., which is now a subsidiary of Envision Healthcare Corp. (NYSE: EVHC) acquires, develops and operates ambulatory surgery centers in partnership with physician practice groups throughout the United States.

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