Judge Mostly Dismisses George Washington U’s Lawsuit Against its Hospital Partner - Diverse Health

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Judge Mostly Dismisses George Washington U’s Lawsuit Against its Hospital Partner

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by Sara Gilgore

A D.C. Superior Court judge has partially dismissed a lawsuit George Washington University filed against Universal Health Services Inc., its corporate partner at GWU Hospital in Foggy Bottom, alleging UHS inappropriately diverted $100 million from the hospital to pay itself.

The suit, filed in December by GWU and affiliated physician group GW Medical Faculty Associates, alleged that the redirection of funds hurt the university’s medical school and doctor network. It named UHS (NYSE: UHS) and its top executives as defendants. The dismissal could further pave the way for a deal between the District and UHS to operate a new hospital planned for Ward 8 — a project that took its latest step forward Monday.

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