San Francisco and Chinese Hospital sue doctor's group

By Julia Cheever, Bay City News Service

April 11, 2006

SAN FRANCISCO (BCN) - The city of San Francisco and a small private hospital in Chinatown sued a medical group in Superior Court today, alleging that it is forcing doctors to choose between the group and the hospital.

The lawsuit, filed by the Chinese Hospital Association and the city against the Brown & Toland Medical Group, alleges that the group is seeking to induce key doctors to leave the hospital and sign exclusive agreements to be so-called "preferred providers" with Brown & Toland.

The lawsuit is based on claims of unfair business practices, restraint of trade and conspiracy to monopolize the market for services by managed care physicians and inpatient hospitals.

Chinese Hospital, founded in 1899, has 59 beds. About 160 bilingual doctors are associated with the hospital.

Brown & Toland is one of the largest medical groups in Northern California, with a total of about 1,500 doctor members.

The lawsuit claims Brown & Toland's actions could potentially cause Chinese Hospital to lose a critical mass of doctors and their patients and shut down.

Richard Grossman, a lawyer for Chinese Hospital, said, "Brown & Toland should not be asking its physicians to sign exclusionary agreements requiring them to resign from health care organizations serving the Chinese community."

Brown & Toland released a statement today in response to the lawsuit, insisting the group's actions have been lawful and vowing to "vigorously defend ourselves."

"Brown & Toland's top priority is its patients and ensuring they receive the best care possible. Brown & Toland prides itself on providing our doctors with the most advanced technology so patients are ensured exemplary medical care. It has been our desire and intent, consistent with this priority, to support continuation of Chinese Hospital as a strong and vital health care facility," the statement read.

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