Ohio Attorney General Yost Prepared to Sue ProMedica Over Missed Payments to University of Toledo
A payment dispute between the University of Toledo and ProMedica has escalated to the point where the Ohio Attorney General is involved. Both organizations claim the other owes them money.
The office of Ohio Attorney General Dave Yost recently announced that it is prepared to begin legal action against ProMedica after the company allegedly missed payments it owed to the College of Medicine and Live Sciences at the University of Toledo as part of an academic affiliation agreement. ProMedica denies it missed payments, and claims that it is actually the University of Toledo that owes money.
AG Yost claims ProMedica has missed around $8 million in payments to the University of Toledo over the past two months, and his office is giving the company a week to pay at least half of that amount. Yost hopes that the two organizations can come to an agreement before that deadline occurs, however. If the payment is not made, Yost is prepared to go to court to enforce the payments.
Yost has held calls with representatives from UToledo and ProMedica, and says that reaching a beneficial conclusion to this conflict is in the best interest of the students of the school, as well as the community as a whole.
Speaking with 13abc, Yost made his position clear: “I am not going to permit ProMedica to use its financial weight to starve the University of Toledo into submission.”
ProMedica also shared its side of the story. A spokesperson for the company said that ProMedica pays more than $3 million to the University and that it is purposefully withholding payments as a “true-up for amounts UT owed up to this point.” ProMedica says the university has not properly engaged in the periodic reconciliation process which “forced us to credit the amounts owed.”
ProMedica released a statement to 13abc that outlines the company’s plan to pay the bill for October and once again ask the university to look into their agreement.
“Historically, ProMedica has made monthly payments to UT College of Medicine & Life Sciences (COM&LS) as part of the Academic Affiliation, and then they reimburse us for expenses associated with supporting the agreement on our campus. Unfortunately, past reimbursement payments from UT COM&LS have been insufficient, resulting in money still being owed to ProMedica.
To recoup the money owed to us for prior and current months, we chose to withhold our investment installment payments in August and September. ProMedica explained the reason for the withholding to the UT COM&LS finance team. Upon learning of the letter, we have requested that UT COM&LS issue a revised communication to accurately reflect the process that has been underway.
We remain committed to the academic mission and look forward to continuing to prepare tomorrow’s caregivers and medical professionals. We are pleased to share that to date, ProMedica has provided:
- $210+ million worth of support to UT COM&LS, inclusive of our $40 million up-front exclusivity payment
- 400+ PPG physicians teaching as part of the Academic Affiliation
- Locally unmatched experiences for 250+ residents and fellows at ProMedica Toledo Hospital
-ProMedica”
Vice President for Legal Affairs and General Counsel of the University of Toledo, Charles Jake, said the initial agreement was meant to improve medical education at the school, as well as attract and retain talent in the healthcare workforce, improve access to healthcare for those who need it, and more.
In a statement to 13abc, AG Yost’s office said, “Initiated in 2015 for 50 years, the affiliation agreement is designed to enhance the quality of medical care and outcomes for ProMedica patients. It requires ProMedica to send monthly payments to support the needs and academic mission of the College of Medicine and Life Sciences – money that represents 44% of the medical school’s annual budget. In return, ProMedica receives certain benefits, including the services of the university’s medical faculty and residents and other university support for Toledo Hospital and Toledo Children’s Hospital.”
More information about ProMedica and the services it provides can be found at its website. More information about the University of Toledo can be found at its website.