ContractsProf Blog

Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

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Sunday, April 13, 2008

Trouble on the Treasure Coast

The Cyberknife Center of Florida's Treasure Coast is suing the St. Lucie Medical Center (SLMC) in a Marin County court for fraud and breach of contract.  Cyberknife opened a multimillion dollar cancer center last summer but closed it in January when, according to the complaint as reported on here, SLMC failed to get approval for medicare billing.  The suit alleges that, despite assurances that it had sought the necessary provider-based status before the cancer treatment center opened in June, SLMC did not apply for such status until after the treatment center opened.  In January, still not having obtained the necessary status, SLMC determined that it had no choice but to close the center.  It is not clear why SLMC was unable to obtain the necessary status for the treatment center, but as the above-referenced article suggests, confusion about effective ownership of the center may have been an issue.

[Jeremy Telman]

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