Ohio AG prepared to sue ProMedica over missed payments to UToledo

TOLEDO, Ohio (WTVG) - Ohio Attorney General Dave Yost said Wednesday his office is prepared to pursue legal action against ProMedica after he says the company missed payments to the University of Toledo College of Medicine and Life Sciences as a part of its academic affiliation agreement. ProMedica, however, says it’s the other way around -- that the university actually owes ProMedica money.

Yost said ProMedica missed the last two months of payments to UToledo, which he said comes out to approximately $8 million, and his office is giving the company seven days to make at least one month’s worth of payments. He said the goal is to come to a resolution between the two entities before it reaches that point. If no resolution has been reached by next Wednesday, Yost will go to court to enforce the terms of the 50-year academic affiliation agreement.

His office had a call with representatives from both sides Wednesday morning in an effort to reach a resolution, as Yost says its in the best interest for students. patients, and the region at large.

“I am not going to permit ProMedica to use its financial weight to starve the University of Toledo into submission,” Yost said.

ProMedica said that the university actually owes ProMedica money. A spokesperson for the company told the Blade Tuesday that ProMedica pays between $3 million and $4 million each month and that the company is withholding the payments as a “true-up for amounts UT owed up to this point.” It said the company has engaged with the reconciliation process in the past and claims the university has not engaged in the process which “forced us to credit the amounts owed.”

ProMedica told 13abc on Wednesday that the company’s plan is to pay the October installment to UToledo and again ask the university to work on a budget pursuant to 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

Charles Jake, the VP for Legal Affairs and General Counsel of the University of Toledo, said said the goal of the initial agreement is to enhance medical education, attract and retain talent, increase access to healthcare, and more.

“Initiated in 2015 for 50 years, the affiliation agreement is designed to enhance the quality of medical care and outcomes for ProMedica patients,” Yost’s office said in a statement. “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.”

You can watch the briefing in full in the attached video.

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