SCHENECTADY, N.Y. (WRGB) — A legal fight between Ellis Medicine and St. Peter’s Health Partners over a group of 27 cardiologists has drawn the attention of the New York state attorney general’s office, which is urging a Schenectady County Supreme Court judge to weigh the dispute against the state’s antitrust law.
In a letter sent to Supreme Court Justice Michael Cuevas, Antitrust Bureau Chief Elinor Hoffmann asked the court to: “consider the claims at issue here against this critical statutory and legal background.”
That background is New York’s antitrust law, known as the Donnelly Act.
Michael Macomber, CEO of the law firm Tully Rinckey, said the attorney general’s office is focusing on how non-compete and non-solicitation agreements could affect competition.
“The Attorney General’s office is chiming in, saying that the impact of the non-compete agreements in this case and non-solicitation agreements is rising to the level that it is actually triggering the Donnelly Act, which is basically anti-monopolies and free trade and things of that nature,” Macomber said.
Hoffmann wrote in the letter: “Non-solicitation agreements can remove employers’ incentive to compete with each other in hiring employees by offering better wages or benefits.”
While non-solicitation agreements are allowed in New York, Macomber said the inclusion of all 27 cardiologists in St. Peter’s non-compete agreements raises broader concerns about competition.
“Now that we’re talking about all 27, will the Attorney General’s office has now taken a position that, no, you’ve actually gone so far as to trigger the Donnelly Act,” Macomber said.
St. Peter’s Health Partners declined to comment on the attorney general’s letter, saying, “St. Peter’s Health Partners does not comment on active litigation.”
Ellis Medicine said in a statement its “position remains that the agreement preserves our ability to contract directly with these physicians to ensure cardiology services continue to be available for the people of Schenectady and the surrounding communities.”
