SpecialtyCare Prevails in Landmark Trial Win Against Medsurant

NASHVILLE, Tenn., Aug. 31, 2016 /PRNewswire/ -- On August 26, a Nashville jury found unanimously that Nashville-based SpecialtyCare, a healthcare provider of intraoperative neurophysiologic monitoring (IONM) services, is entitled to $16 million in punitive damages from competitors Medsurant Holdings, LLC and Medsurant, LLC for Medsurant's interference with assets of competitor ProNerve acquired by SpecialtyCare in 2015. In addition to punitive damages, the jury awarded $2.8 million for SpecialtyCare's lost profits, bringing the total amount awarded by the jury to SpecialtyCare against Medsurant to $18.8 million.

In making its determination that Medsurant is responsible for $16 million in punitive damages, the jury found that Medsurant intentionally falsified, destroyed or concealed records to wrongfully evade liability. The jury's verdict came after a five-day trial in the Chancery Court for Davidson County, Tennessee.

SpecialtyCare, represented by Bradley Arant Boult Cummings LLP Nashville attorneys Thor Y. Urness, R. Brandon Bundren and Patricia Head Moskal, filed suit in June 2015, asserting that Medsurant interfered with SpecialtyCare's existing and prospective business relationships, and induced breaches of contracts, which SpecialtyCare acquired from ProNerve. SpecialtyCare alleged that in hiring nine former ProNerve employees who were subject to restrictive covenants, Medsurant tortiously interfered with SpecialtyCare's relationships with such employees and with the health providers that those former employees serviced while at ProNerve. On May 3, 2016, the court entered a default judgment for liability in favor of SpecialtyCare for Medsurant's persistent failures to obey the court's orders to produce information.

"This verdict validates our assertion that doing business the right way matters to patients, hospitals, and the industry. We believe that this outcome enhances the reputation of IONM and the lawful and compliant providers who deliver excellent clinical care," said SpecialtyCare Chief Executive Officer Melvin F. Hall, Ph.D.

"The jury heard the proof, including admissions by Medsurant's CEO, along with other leadership, that what they did was wrong. The jury's verdict and the court's default judgment were each strong messages that severe consequences for companies can result when they ignore court orders and fail to comply with the law," said Mr. Urness.

A full copy of the trial transcript is available upon request.

About SpecialtyCare

More than 1,000 hospitals and 13,000 physicians trust SpecialtyCare to help them achieve exceptional care outcomes, regulatory compliance, and financial results.  With nearly 1,400 clinicians supporting 350,000 procedures annually, our national presence enables us to maintain the SpecialtyCare Operative Procedural Registry (SCOPE™), the largest database of its kind. We use SCOPE to identify trends, determine benchmarks, disseminate best practices, and foster innovations that improve patient outcomes, increase efficiencies, and minimize costs. We are both accredited and certified by The Joint Commission. By leveraging the rigor of these programs and our extensive experience, we have developed expertise beyond industry requirements so that our customers can be certain they have the best partner for clinical excellence in perfusion, intraoperative neuromonitoring, autotransfusion, sterile processing management, surgical assist, and minimally invasive surgical support.

SpecialtyCare has been a member of the American Securities private equity portfolio since May 2011. American Securities' Managing Director Mark Saiontz serves as Chairman of the Board for SpecialtyCare.

About Bradley

Bradley Arant Boult Cummings LLP combines skilled legal counsel with exceptional client service and unwavering integrity to assist a diverse range of clients in achieving their business goals. With offices in Alabama, Florida, Mississippi, North Carolina, Tennessee, and the District of Columbia, the firm's 500 lawyers represent regional, national and international clients in many industries, including healthcare, financial services, life sciences, real estate, construction, technology, energy, insurance, and entertainment, among others.

SOURCE SpecialtyCare; Bradley Arant Boult Cummings LLP