One of East Coast’s only black-owned radiology practices files for bankruptcy protection

One of the only black-owned radiology practices on the East Coast has filed for Chapter 11 bankruptcy protection following a series of setbacks. 

Capitol Radiology LLC submitted the voluntary petition in the U.S. Bankruptcy Court for the District of Maryland on July 18. Based in the community of Laurel, halfway between D.C. and Baltimore, the practice is seeking to wipe out nearly $157,000 in debt, according to court records.  

Attorney William C. Johnson Jr., listed in the filing, would not comment on the matter Thursday. Larry McKenney, managing member of the practice, who signed the bankruptcy petition, did not respond to requests for comment this week. 

“The debtor’s Chapter 11 filing was not precipitated by concerns relating to quality of patient care or to patient privacy matters, but by contractual dispute involving debtor’s former accountant,” court filings indicate. 

Capitol Radiology on Feb. 13 had a judgment entered against it in a landlord-tenant dispute. Eva Partners subsequently filed a petition on April 21, seeking to recoup $156,877.39. The dispute is over CR’s leased premises at 7350 Van Dusen Road, Unit B-10, in Laurel, Maryland. Court records indicate that Doriann Thomas, MD, was the sole radiologist working for the practice at the time of the bankruptcy filing. Capitol Radiology’s staff has included two full-time employees and six subcontractors, servicing approximately 21 patients per day.

Dr. Thomas founded Capitol Radiology in 2005. The black female radiologist had worked at an imaging center owned by RadNet predecessor Radiologix and pulled together the resources to buy the business and pursue her dreams. Thomas and colleagues said last year that they believe CR is the sole black-owned radiology facility in Prince George’s County, Maryland, and potentially the entire Eastern Seaboard. 

Lawsuit, mammography setback

About one year ago, Capitol Radiology filed a lawsuit against RadNet Inc. and the University of Maryland Medical System. CR had provided radiology reads on the UMMS campus since starting date. However, McKenney and colleagues contended that the hospital system inked a no-bid deal with Los Angeles-based RadNet to provide imaging services on the same campus, just 50 yards from Capitol Radiology’s own outpatient center.

The practice had sought an injunction preventing RadNet from opening the new facility, contending it would have a “substantially adverse effect” on its business. However, Judge William A. Snoddy denied the request on Aug. 9, 2024. 

RadNet declined to comment on the lawsuit, while UMMS could not provide comment on the complaint by end of day Thursday. Attorneys representing the health system also did not immediately respond to a Radiology Business request for comment July 24.

Federal court records did not designate the case as closed as of this week. However, no new filings are listed from either side of the dispute since Nov. 25. The most recent document is a filing from UMMS and its attorneys, advocating for dismissal of the lawsuit. 

“This case is not about discrimination or patient care,” defense attorneys charged. “The new radiology center is now operating and serving the very patients whom Capitol Radiology claims are underserved. Despite Capitol Radiology’s inflammatory allegations, this is fundamentally a business dispute.”

Defense attorneys with Baltimore-based Kramon & Graham charged that UMMS is not subject to public bidding law, as Capitol Radiology claimed, nor did sexual or racial discrimination influence its decision to partner with RadNet. Instead, UMMS contends Capitol Radiology did not have the “proven track record,” financial resources, “experience developing and constructing imaging centers” nor “scale contemplated by the joint venture” to meet its needs.

Defense attorneys also cited a 2022 U.S. Food and Drug Administration revocation of Capitol Radiology’s accreditation as reason for the switch in imaging providers. This left the practice unable to perform mammograms for over two years. In previous conversations with Radiology Business, the practice has vehemently denied that its breast imaging services were substandard.