Noncompetes, poached surgeons and practice sales drove some of the year’s most-watched legal fights over physicians, practices and pay.
Here are 12 cases Becker’s covered in 2026 and where they stand now.
1. Ellis Medicine v. St. Peter’s Health Partners (N.Y.)
Ellis Hospital in Schenectady sued Aug. 12. It alleged one-year noncompetes held by St. Peter’s Health Partners Medical Associates blocked 27 cardiologists from joining Ellis, putting about $75 million in annual procedure revenue at risk. St. Peter’s said it “denies these allegations and will vigorously defend itself in court.” A Schenectady County judge later lifted a temporary restraining order that had barred Ellis from offering contracts, and St. Peter’s filed a notice of appeal Oct. 1. By early October, 20 of the 27 cardiologists had submitted resignations. “We believe physician retention is achieved by fostering a culture of respect, support and trust, not through litigation,” Ellis President and CEO Paul Milton said.
What happened next: On Oct. 16, two cardiologists St. Peter’s sued, Christopher Dibble, MD, and Stephen Piacentine, MD, filed a counterclaim seeking to void their noncompete and non-solicitation provisions. The counterclaim also brings defamation claims against two St. Peter’s executives, the Daily Gazette reported. Ellis said Oct. 21 that 22 of the 27 cardiologists will join it Jan. 1. Mr. Milton told CBS6 Albany the same.
2. Southwoods Health v. 2 physician owners (Ohio)
Southwoods Health, which operates the Surgical Hospital at Southwoods in Boardman, sued two physician owners Oct. 1. The defendants are David Weimer, MD, and James Jamison, MD. The suit alleges the planned sale of Youngstown Orthopaedic Associates to Cleveland Clinic violated a two-year, 30-mile restrictive covenant. The complaint cites a June email from the two physicians saying “it is possible that we will become employees of CCF.”
What happened next: A magistrate approved a temporary restraining order barring the two physicians from taking part in the practice’s letter of intent while they hold Southwoods ownership, according to Business Journal Daily. The practice still told patients it will join Cleveland Clinic Nov. 1 and does “not anticipate any interruption in patient care.” Cleveland Clinic declined to comment.
3. South Texas Spinal Clinic v. Surgery Partners (Texas)
The San Antonio clinic sued Surgery Partners in Texas Business Court Oct. 9, seeking more than $5 million. Also named are Orthopedic & Spine Surgical Hospital of South Texas and spine surgeon Antonio Webb, MD. The suit alleges Surgery Partners used information from acquisition talks to recruit four of the clinic’s physicians. “It trusted what was presented to them as a legitimate business opportunity,” said Brad Thompson, an attorney for the clinic.
What happened next: The defendants had not responded publicly as of mid-October, Hoodline reported.
4. Clark v. Salem Surgery Center (Ore.)
Anesthesiologist Rich Clark, MD, won a $1.6 million verdict in Marion County Circuit Court against Salem Surgery Center, which does business as Northbank Surgical Center. The verdict was reported in September. The Optum-affiliated center is majority owned by SCA Health. Dr. Clark alleged he was fired after reporting how nurses handled anesthesia drugs. “We’re not a wedding venue,” Northbank CEO Christina Pries, RN, said under cross-examination.
What happened next: The surgery center has appealed, The Lund Report reported. No appeal ruling has been reported.
5. Jefferson Health v. Independence Blue Cross (Pa.)
Jefferson sued IBX July 22 over five payment policies it said cost nearly $100 million this year. That includes $35.4 million tied to a rule shifting certain procedures from hospital outpatient departments to freestanding ASCs. An IBX spokesperson said: “It’s unfortunate that Jefferson chooses to do this in the public arena.”
What happened next: On Oct. 16, a federal judge in the Eastern District of Pennsylvania denied IBX’s motion to dismiss, except as to Jefferson’s request for attorney’s fees, The Philadelphia Inquirer reported. The two sides’ contract expires Dec. 31.
6. Burbage v. U.S. Anesthesia Partners (Texas)
On Sept. 30, a federal judge dismissed the ASC-market claims in a proposed class action against USAP, finding the lead plaintiff lacked standing. “Plaintiff received anesthesia at a hospital, and no amendment can change that fact,” U.S. District Judge Alfred Bennett wrote. Claims tied to the hospital market continue.
What happened next: Class certification is expected in late 2026 or early 2027, with trial set for January 2028. The FTC’s separate case against USAP is stayed through Nov. 18 while the parties finalize a settlement term sheet.
7. Kaul v. Oregon Health & Science University
Sanjiv Kaul, MD, former director of OHSU’s Knight Cardiovascular Institute, is seeking more than $2.1 million over alleged retaliatory pay cuts. On July 22, a Multnomah County judge barred further cuts to his pay, lab funding and lab space until trial. “It is a huge relief to Dr. Kaul that the court concluded that [he] enjoys a likelihood of success on the merits of his claim that OHSU unlawfully retaliated against him,” said Paul Buchanan, his attorney. OHSU declined to comment.
What happened next: Trial is set for February 2027.
8. State of Franklin Healthcare Associates v. James Joslyn, MD (Tenn.)
An arbitrator ordered Dr. Joslyn to repay $145,110 to his former group and dismissed the group’s roughly $220,000 overpaid-draw claim. Washington County Chancery Court confirmed the award Sept. 28. “Because the appeal and Dr. Joslyn’s counterclaims remain pending, I am limiting my comments to the public record,” said Jesse Campbell, Dr. Joslyn’s attorney.
What happened next: The group filed a notice of appeal Oct. 5. A separate suit to enforce Dr. Joslyn’s one-year noncompete is pending, WCYB reported.
9. Paletta v. Mercy (Mo.)
George Paletta, MD, longtime St. Louis Cardinals team physician, sued Mercy in July seeking $182,500 in unpaid compensation. Mercy says it gave timely notice. “Mercy concludes we do not owe Dr. Paletta any money,” the system said.
What happened next: No update has been reported.
10. Gallagher v. North Carolina medical and nursing boards
Jamie Gallagher, a Wake County nurse practitioner, sued the leaders of the state’s medical and nursing boards Sept. 2. She argues North Carolina’s required physician collaborative practice agreement is unconstitutional and says she pays her collaborating physician $16,500 a year.
What happened next: No court action has been reported. The North Carolina Medical Society said it “opposes this lawsuit” and is forming a legal coalition with specialty groups.
11. No-poach suit against SCA Health, USPI and DaVita
Former employees alleged the companies agreed not to recruit each other’s senior staff.
What happened next: On June 10, a federal judge in the Northern District of Illinois denied class certification. The judge excluded the plaintiffs’ expert wage analysis and found that individual issues would outweigh common ones across more than 6,000 workers. The case moves forward on an individual basis. No appeal has been reported.
12. Richardson v. Northwestern Medicine (Ill.)
On July 29, the 7th Circuit upheld summary judgment against neurosurgeon Robert Richardson, MD, in his age discrimination suit over his 2020 firing. The court found COVID-era remarks did not show age caused the firing.
What happened next: No further action has been reported.
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