Cardinal Health Sues Louisiana Hospital After Breach of Agreements

Multinational healthcare services company Cardinal Health filed suit in Lousiana federal court against DeQuincy Memorial Hospital (DMH) Monday, alleging that the hospital failed to honor a credit application and a pharmacy services agreement.

According to the complaint, DeQuincy entered into Credit Application with Cardinal Health in 2009. Under the agreement, Cardinal would “accept orders from DMH on credit in exchange for DMH’s agreement to timely and fully pay Cardinal Health for such orders in accordance with the applicable payment terms.” Cardinal further explained that its accceptance of the agreement was based on DMH’s credit history. The plaintiffs said they gained in exchange a security interest in all of DMH’s “business assets,” and proffered that this interest was perfected. Nonetheless, Cardinal said DMH failed to pay and according to the filing owes over $100,000 under the contract.

Separately, the complaint also explains that Cardinal entered into a Pharmacy Services Agreement with DMH in 2017. Under that agreement, the plaintiff said, Cardinal was to ” provide certain remote pharmacy services” in exchange for payment. The company said DMH failed to do so and now owes over $17,000.

The specific counts against the defendant include breach of contract, goods and services provided, unjust enrichment, and breach of guaranty. Cardinal is represented by McGlinchey Stafford.