Judge denies black-owned radiology practice’s request for injunction against RadNet center opening

A circuit court judge has denied a black-owned radiology practice’s request for an injunction against the University of Maryland Medical System and RadNet Inc.

Capitol Radiology in Laurel, Maryland, first filed suit against the two organizations on July 31, claiming they had conducted an unfair bidding process to squeeze out the physician group. RadNet a few years ago inked a joint venture with UMMS with plans to open a new imaging center on the same campus, just 50 yards from Capitol Radiology’s facility where it has handled reads for almost 20 years.

The practice had hoped to halt the center from opening, contending it would have a “substantially adverse effect” on its business. However, Judge William A. Snoddy denied the request on Aug. 9.

“Upon consideration of [Capitol Radiology’s] motion and the record in this matter, the court finds that plaintiff has failed to convince the court why it should order a party to do or refrain from doing certain acts before the final determination of this case under the four-factor test for interlocutory injunction,” wrote Snoddy, with the Circuit Court for Prince George's County.

These factors include (1) the likelihood the case will succeed on its merits, (2) whether the defendant would suffer greater injury if the injunction is granted/denied, (3) the irreparable harm Capitol Radiology would suffer if the injunction is not granted, and (4) whether it is in the public interest to grant the injunction.

The new RadNet center was reportedly open and operating as of Friday. RadNet declined to comment, while attorneys representing Capitol Radiology issued a statement following the ruling.

"RadNet entered a joint venture with a University of Maryland Medical System at a time that UMMS' Board was making more than $115 million in slush fund payments,” plaintiff attorneys told Radiology Business Monday. “The two together entered an agreement through a process that excluded the only black-owned radiology facility in the mid-Atlantic, continuing a long, well-documented legacy of discrimination against black-owned radiology practices in the United States. The court's decision specifically authorized Capitol Radiology to continue to pursue its claims, and we are confident that a jury will ultimately find in favor of Capitol Radiology.”

Marty Stempniak

Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic. 

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