July 20, 2008

Tennessee Psychiatric Service Sues Aliquippa Hospital

A for-profit Tennessee psychiatric service company has sued Aliquippa Community Hospital for nearly $2 million, claiming the medical center failed to live up to contractual obligations.

Psychiatric Solutions Inc. claims it reached a deal with the hospital in July 2006 in which it was hired for $10,000 per month to provide services to patients suffering emotional and psychiatric disorders. Psychiatric Solutions accuses hospital administrators of making only one payment for $22,434.

The company, which filed the lawsuit Thursday in U.S. District Court in Pittsburgh, seeks approximately $1.73 million in fees, interest, damages, lost profits and legal fees.

Originally published by The Tribune-Review.

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