Seven physicians who sued Gastonia, N.C.-based CaroMont Health in 2019 over a noncompete clause in their employment contracts voluntarily dismissed their suit, according to a May 18 report in the Gaston Gazette.
The physicians left CaroMont's South Point Family Practice in 2019 to join Tyron Medical Partners, a physician practice launched the year before by almost 100 physicians formerly employed by Charlotte, N.C.-based Atrium Health.
CaroMont requested the seven physicians pay $1.8 million to be released from their noncompete clauses, and the physicians sued to avoid payment. The physicians argued their noncompete clauses only prevented them from joining a competing health system within 20 miles of CaroMont, and Tryon is not a hospital or health system.
The two groups reached a settlement to resolve the dispute, according to a CaroMont statement.