Black-owned practice sues health system alleging discriminatory bidding behavior

A Black-owned radiology practice filed a lawsuit July 31 against the University of Maryland Medical System over alleged unfair and discriminatory bidding practices. 

1. The lawsuit alleges the University of Maryland Medical System gave Los Angeles-based RadNet a joint-venture partnership to build a new outpatient radiology center on the center's campus, despite it being 50 yards away from Black-owned, Laurel, Md.-based Capital Radiology. 

2. The lawsuit alleges the move violates agreements that UMMS conduct procurement activities consistent with minority purchasing standards applicable to Maryland government agencies and not discriminate based on race.

3. Baltimore-based University of Maryland Medical System, Largo, Md.-based UM Capital Region Health, Laurel-based Advanced Radiology at Capital Region, and Los Angeles-based RadNet are named as defendants.

4. "UMMS did not offer Capital Radiology an opportunity to bid on a contract for the provision of outpatient radiology services on the Laurel campus, even though it had been exclusively providing such services at that exact location for nearly 20 years," the lawsuit said.

5. The practice contends that the medical system excluded Capital Radiology because it was Black- and female-owned, and "therefore likely to prevail under State bidding rules," according to the suit.

6. The lawsuit also claims UMMS entered into the joint venture agreement with RadNet to gainaccess to patient referrals. Additionally, the move is allegedly in breach of the agreement by which Capital Radiology purchased the Laurel facility from RadNet.

7. "While we cannot comment on pending litigation, the University of Maryland Capital Region Health is a mission-driven organization focused on providing high-quality, safe and compassionate care to residents of Prince George's County. In general, expanding and enhancing access to care and increasing health care options for the community, giving individuals choice and flexibility, is part of our strategic approach and among our top priorities," UM Capital Region Health, which operates the Laurel medical campus listed in the complaint, said in a statement shared with Becker's.

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