Allentown, Pa.-based Lehigh Valley Physicians Group agreed a deal to acquire a multispecialty group, but a motion filed by two area hospitals could halt the sale, The Morning Call reported Sept. 28.
Scranton, Pa.-based Moses Taylor Hospital and Regional Hospital of Scranton, affiliates of Commonwealth Health System, also wish to acquire Delta Medix in Scranton, which agreed to sell its practice to Lehigh Valley in July, but did not publicly announce the deal.
Delta Medixfeatures more than 25 providers that specialize in urology, general surgery, cancer care and vascular surgery, among other specialties, according to its website.
The practice's owners said they chose to sell to Lehigh Valley because it offers services, particularly in cancer care, that would help make the practice the "premier healthcare and cancer treatment center in Northeastern Pennsylvania," according to the report. The practice hopes the deal can be finalized by Dec. 31.
An attorney for Delta Medix cited concerns about quality of care as a key reason for rejecting offers from Moses Taylor Hospital and Regional Hospital of Scranton, The Morning Call reported.
But a 2017 agreement between Delta Medix and Scranton Quincy Hospital Co., an affiliate of Commonwealth, has caused a dispute between the parties. The agreement allegedly gives Commonwealth the "right of first refusal" to nix any sale of Delta Midex to another party, as long as it matches the sales price and all other conditions, according to the report.
The health system stated in court papers that it offered more money than Lehigh Valley and can meet all other conditions, including offering employment to all Delta Medix physicians and staff.
Delta Medix rejected the offer from the two hospitals, and claims that the section of the cancer care network agreement regarding the sale of its practice is not binding because the hospitals cannot match all the services that Lehigh Valley will provide, according to the report.