Virginia radiology group sues hospital partner

Virginia Medical Imaging has filed a lawsuit against Mary Washington Healthcare in Fredericksburg Circuit Court, seeking at least $2.65M in damages.

The complaint centers on a long-running outpatient imaging joint venture between Virginia Medical Imaging and Mary Washington Healthcare. Virginia Medical Imaging alleges wrongful conduct, breach of contract, breach of fiduciary duties, and self-dealing.

Medical Imaging of Fredericksburg is the joint-venture entity at issue. Virginia Department of Health records show that MediCorp Services and Virginia Medical Imaging jointly own Medical Imaging of Fredericksburg, with MediCorp listed as the majority member and Virginia Medical Imaging as the minority member.

Contract negotiations are part of the background to the dispute. The complaint alleges that talks broke down after the hospital side proposed new terms, including requirements for radiologists to remain on-site for overnight shifts.

Virginia Medical Imaging alleges that subsequent actions by Mary Washington Healthcare harmed the joint venture and pressured the radiology group. The complaint describes the alleged conduct as a “retaliatory campaign” after the radiology services agreement was not renewed.

Specific allegations include withheld quarterly joint-venture revenue distributions, attempted recruitment of radiologists away from Radiologic Associates of Fredericksburg, proposed movement of PET/CT services into the hospital, and lease issues affecting outpatient imaging locations.

Women’s imaging access is also part of the dispute. The complaint alleges that rent for the Imaging Center for Women in Fredericksburg was raised sharply and that the increase could threaten the center’s continued operation.

Mary Washington Healthcare has denied that patient care is at risk. In a statement reported by local media, the health system said there would be “absolutely no disruption” to radiology services, including mammography and women’s health services.

Radiologic Associates of Fredericksburg is closely affiliated with Virginia Medical Imaging. The practice describes its radiologists as board-certified and fellowship-trained, with services across diagnostic and interventional radiology.

The lawsuit remains pending. The allegations have not been adjudicated.