Radiology group sues Trinity Health for $3M, claiming hospital partner ‘significantly mismanaged’ imaging services
A radiology group is suing hospital giant Trinity Health claiming it has mismanaged medical imaging services and hindered its ability to fulfill a contract.
Advanced Imaging Specialists (AIS), Danbury, Connecticut, alleges the breach of contract occurred shortly after it started performing services for Trinity’s Saint Francis, Johnson Memorial, and Mount Sinai hospitals in the same state.
AIS in early 2024 negotiated a deal to become the three facilities’ exclusive diagnostic and interventional radiology services provider, replacing a previous Trinity partner. As part of the contract, Advanced Imaging Specialists expected to have adequate facilities, staffing, supplies and equipment to perform its duties, the Hartford Courant first reported Nov. 22.
However, following execution of the agreement—which runs through September 2029—Advanced Imaging Specialists discovered Trinity Health’s radiology department was “significantly mismanaged.” AIS also charges the health system made “material misrepresentations” regarding operation of its facilities.
“Critical radiology equipment at Saint Francis was not available for the performance of the radiology services as the equipment did not exist, was in disrepair, or was at end of service life,” Advanced Imaging Specialists said of the Hartford-based facility, with the list of missing items including MRI and ultrasound machines, IR equipment and PET scanners. “Mammograms could not be performed or administered at Saint Francis after Trinity Health closed two mammogram/ultrasound procedure rooms for six months due to equipment failures, staffing shortages, and lack of management and/or supervision,” it added.
Trinity Health of New England, which operates five hospitals, denies the allegations and will “vigorously defend itself” in court, a representative told the Hartford Courant.
“We are confident in the quality of all care we provide,” a health system rep told the newspaper. “While we work through this matter, we are committed to ensuring there is no disruption in patient care and that these services remain available to our community.”
Meanwhile, Advanced Imaging Specialists, represented by McCarter & English LLP of Hartford, declined to comment beyond the complaint, which was filed Nov. 19. AIS further charges Trinity “underrepresented” the number of radiologists required for breast imaging. Plus, its callback rate for screening mammograms was “far below national CMS guidelines,” and the system allegedly has failed to ensure adequate staffing, among other allegations.
“The number of fellowship-trained radiologists scheduled to provide services for Saint Francis and Johnson Memorial were significantly underrepresented and inadequate to serve the patient volume with high quality radiology services at a level 1 trauma and stroke center, 24 hours a day, 7 days a week,” the complaint charges.
Further, Trinity Health of New England’s overnight radiology services generate “substantially less” than fair market value, falling below the previously estimated amount of $200,000 per month. Trinity Health also had a pre-existing exclusive arrangement with its prior radiology provider for all outpatient imaging, which limited Advanced Imaging Specialists’ ability to generate revenue, the lawsuit says.
Upon discovering these issues, the radiology group “promptly and diligently” communicated with Trinity management to find a solution. Their recent agreement requires the hospital system to settle any claims or controversies through “negotiation in good faith and timely escalation to the appropriate higher-level managers and executives.” The radiology group has reportedly communicated with the hospital about these staffing shortages, lack of equipment and “insufficient revenue generation.”
They’ve executed three amendments to the agreement, with AIS securing certain monthly “support payments” from Trinity as partial compensation for the shortfall.
“In providing such payments, Trinity Health recognized that AIS incurred significant losses as a result of Trinity Health’s conduct in connection with the provision of interventional radiology services under the agreement,” the complaint states.
AIS said it has “repeatedly” proposed various solutions to resolve the outstanding issues. These include software related to both virtual coronary CT angiography and prostate MRI, revenue generating workflow modifications, and financial negotiations to support AIS’s ability to continue administering imaging services.
“Trinity Health has refused to engage in good faith negotiations, including failing to respond to AIS’s inquiries, failing to connect AIS with Trinity Health personnel with decision-making authority, and failing to cooperate in scheduling and attending negotiation meetings,” the lawsuit charges. “Despite AIS’s good faith efforts and despite Trinity Health’s continued acceptance of the radiology services rendered by AIS under the agreement, Trinity Health has not addressed any of the issues raised by AIS.
As a result of Trinity’s “material misrepresentations” and “failure to cure the issues” with “inadequate facilities, equipment, staffing, and mismanagement of the radiology department,” AIS is losing $400,000 a month on the agreement. To date, it has sustained damages greater than $3.2 million because of the hospital system’s alleged misconduct.
Advanced Imaging Specialists bills itself as an independent, physician-owned radiology practice with an equal partnership model. It employs approximately 50-plus rads in 100% private practice covering multiple hospitals and 100% owned outpatient offices, according to a job listing with IndependentRadiology.com. The practice is currently hiring for weekends and overnights, among other positions, offering a salary range of $500,000 to $550,000 with additional compensation based on volume.
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.