What You Should Know:
– The Kerlan-Jobe Orthopaedic Clinic, a renowned institution known for pioneering the Tommy John surgery and its commitment to athletes and first responders, has filed a $150M lawsuit against Cedars-Sinai Medical Care Foundation, Santa Monica Orthopaedic and Sports Medicine Group (SMOG), and several executives.
– The lawsuit, filed in Los Angeles County Superior Court, alleges a decades-long scheme by Cedars-Sinai to misappropriate Kerlan-Jobe’s reputation, intellectual property, assets, and patient base without compensation.
Orthopaedic Clinic Claims Cedars-Sinai Appropriated its Reputation, Assets, and Patient Base
Kerlan-Jobe claims that Cedars-Sinai, in conspiracy with SMOG, engaged in a series of unlawful actions, including:
- Preventing patients from scheduling appointments with Kerlan-Jobe doctors: This was allegedly done while misleading the public by presenting Cedars-Sinai as Kerlan-Jobe.
- Unlawfully profiting from Kerlan-Jobe’s assets: The lawsuit claims that Cedars-Sinai, despite its non-profit status, seized control of Kerlan-Jobe’s key assets, brand, and intellectual property without providing any compensation.
- Poaching Kerlan-Jobe physicians: Cedars-Sinai allegedly coerced Kerlan-Jobe physicians to join SMOG, violating non-compete agreements and fiduciary duties.
- Retaliating against dissenting physicians: Kerlan-Jobe alleges that physicians who opposed Cedars-Sinai’s actions were punished and their practices were undermined.
The lawsuit centers around a decades-long contract between Kerlan-Jobe and Cedars-Sinai that expired in October 2024. Kerlan-Jobe claims that Cedars-Sinai used this contract to exert control over Kerlan-Jobe’s operations, demanding that all patient services be routed through Cedars-Sinai facilities.
According to the complaint, some Kerlan-Jobe physicians cooperated with Cedars-Sinai and received substantial financial benefits, while those who exercised their independent judgment were penalized. As a result, Kerlan-Jobe claims it has been left with limited resources and only three non-disqualified physicians to rebuild its practice.
Kerlan-Jobe’s Legacy and Commitment to the Community
Kerlan-Jobe has been a leading provider of sports medicine for nearly half a century, renowned for its treatment of professional athletes, first responders, and patients from all walks of life. The clinic has pioneered groundbreaking surgical techniques, including the Tommy John surgery, and has a long-standing commitment to serving the Los Angeles community.
The lawsuit alleges that Cedars-Sinai’s actions have jeopardized Kerlan-Jobe’s ability to continue serving the community and prioritize patient care. Kerlan-Jobe claims that Cedars-Sinai has prioritized profits and prestige over patient well-being.
“Cedars-Sinai, hiding behind its non-profit status, has orchestrated an underhanded scheme to crush Kerlan-Jobe, steal its assets, and prioritize profits over patient care,” said a spokesperson for Kerlan-Jobe. “We’re fighting not just for our practice, but for the Los Angeles community, including first responders who depend on us.”
