SOFHA files lawsuit, meets with staff; patients frustrated

State of Franklin Healthcare Associates (SOFHA) has had a busy couple of weeks.Amid ongoing confusion about whether doctors from Mountain Region Family Medicine would continue working under SOFHA, the physician-led primary care group filed a lawsuit against Summit Medical Group (SMG). The complaint, filed Sept. 17 in Washington County Circuit Court, alleges that Knoxville-based SMG "orchestrated a scheme" to turn SOFHA's employees against them and "destroy" the business.On Monday, SOFHA stated in a press release that they were working to keep some of the doctors that had previously said they would not renew their contracts. The group also announced that Mountain Region's Colonial Heights location would relocate to Kingsport's historic Press Building, where the rest of that clinic's providers are located."In the best interest of patient care, we are working with these physicians on their agreements to ensure continuity of care for our patients," the release said. "We will continue to work directly with any affected patients. Their care is our top priority."On Wednesday, SOFHA Director of Marketing and Communications Catherine Heath confirmed that the "vast majority of Mountain Region providers are remaining" with the group and that "only a very small number have indicated they may not, and some of those conversations are still ongoing.""We understand the importance of continuity of care for our patients," Heath wrote in an email. "While some providers are no longer with SOFHA, they have not disclosed their future practice locations at this time, and some of their plans have continued to change. Because we did not want to provide patients with incomplete or erroneous information, we have had to wait until we could share accurate details."Throughout the back-and-forth, patients say they have been largely left out of the loop. One patient even started cutting her pill doses in half last week because of the uncertainty around future appointments."I didn't know how long I would need to go without refills," said Dianna Bourn-Jennings, noting that her pharmacy said they couldn't prescribe her usual long-term pain management medication.Patients left in the darkBourn-Jennings and her family have been Mountain Region patients since around the time they moved to the area in 1981. This includes her father, who's in his late 80s and has serious health concerns.SOFHA did not contact Bourn-Jennings or her family at all until Tuesday, when she received a text confirming a previously-uncertain October appointment with her usual doctor. She said that all her information about doctors leaving SOFHA came from Facebook and overheard conversations at appointments.According to Tennessee law, the responsibility of notifying patients of a physician departure is up to that doctor's employment contract. The American Medical Association ethics code recommends that physicians tell patients about any barriers to care long enough in advance for them to find another doctor.SOFHA is now contacting patients (Heath said the team has been reaching out directly by phone to help patients schedule appointments), but Bourn-Jennings is unsettled by how the situation was handled. She said when previous doctors left the practice, she was given notice at least two months in advance."It's bad enough for my husband and me and my kids… but to leave my dad in the lurch like that, it really frosts me, to tell you the truth," she said. "I really have a problem with the lack of consideration they gave to their patients."It's a sentiment that Barbara Mahoney, a patient of another Mountain Region doctor, shares. Mahoney said her physician has provided stability and a near-guaranteed appointment when her family needs it for the past 26 years."He's like family," she said. "Me and my husband, my daughter, my grandchildren, he's all of our doctors. And at our age, how would we find a new doctor?"Her physician told her recently that he would leave his practice after Sept. 30. She added that she has never heard anything directly from SOFHA and first heard of the situation through the news."You would think during all of this that they [SOFHA] probably would've sent a letter out or posted something for the patients," Mahoney said. "I mean, it's all just clear as mud."Mahoney said she won't switch to another provider until she has to. For now, her future appointments are on hold. She figures she'll go to urgent care or the emergency room if she gets sick."We don't know anything," she said. "We're just hoping that our doctor will have a practice after all this settles."SOFHA files lawsuit against SMGAccording to SOFHA's lawsuit, the company's issues stem from SMG's "scheme" and desire to establish themselves in East Tennessee and Southwest Virginia. SOFHA alleges that SMG broke non-disclosure agreements and conspired with Sullivan County and Virginia physicians to acquire some or all of the group's assets.SOFHA's complaint against SMG, filed Sept. 17 in Washington County Circuit Court, alleges the following approximate timeline between the two groups: April 4, 2016: SOFHA and SMG enter into their first non-disclosure agreement as they discuss a possible transaction. Oct. 7, 2021: SOFHA and SMG enter into a second NDA.April 30, 2025: SOFHA and SMG enter into a third NDA.Before April 30: SMG representatives communicated with certain SOFHA physicians regarding acquisition of SOFHA practices.April 30: Certain SOFHA physicians that communicated with SMG gave notice of intention not to renew employment with SOFHA.May 21: SMG issued a letter of intent to SOFHA for acquisition of "substantially all of" SOFHA's assets.On or before May 23: SMG reps disclosed existence of this letter of intent to SOFHA employees, without SOFHA knowledge or consent.May 31: This first letter of intent terminated by its own terms.Between July 1–11: SMG reps met with several SOFHA physician employees without SOFHA knowledge or consent. SOFHA alleges that their employees divulged confidential information and trade secrets to SMG.Since April 30: Other SOFHA physicians have given notice of non-renewal.July 3: SOFHA counsel sent an email to SMG counsel asking them to confirm that SMG was not discussing the letter of intent with anyone other than SOFHA's CEO or president. SMG counsel did not respond.July 8: SOFHA counsel reiterated the email request.July 11: Physicians in Sullivan County and Southwest Virginia sent an email to the board of governors of SOFHA, formally requesting consideration and approval of a sale of some of SOFHA's assets to SMG.July 21: SMG issued a second letter of intent to SOFHA and SMS for acquisition of certain assets.July 25: SOFHA sent notice to physicians who had given notice of non-renewal, inviting to extend their termination date to Dec. 31.July 28: The second letter of intent terminated by its own terms.July 30: Physicians in Sullivan County and Southwest Virginia met with staff and told them they would be joining SMG on Jan. 1, 2026. "To the detriment of [SOFHA's] patients, physicians and employees, [SMG's] scheme is working," the complaint states.The lawsuit seeks relief on seven counts: breach of contract, breach of fiduciary duty, tortious interference with business relationships, tortious interference with contract right, violation of Tennessee Code Annotated 47-50-109, violation of the Uniform Trade Secrets Act and civil conspiracy.It also asks for compensatory damages of up to $120 million "or such amount to be proven at trial," along with other punitive, treble and exemplary damages.Matt Miller, SMG marketing and communications manager, said in a statement that the group is "surprised and disappointed" by SOFHA's legal actions."This is particularly surprising, given our ongoing, good-faith and transparent efforts with SOFHA over the last few months — including in the hours prior to this litigation being filed — to help find constructive, long-term solutions to their ongoing physician and financial challenges," he wrote in an email. "Simply put, these claims are without merit and we will vigorously defend ourselves."