With temporary restraining order lifted, RadCare takes over contract with Maui hospital

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A temporary restraining order preventing RadCare from becoming the exclusive radiology services provider at Maui Memorial Medical Center was dissolved July 11, allowing the radiology group to take over for incumbent Maui Radiology Associates, according to a report from The Maui News.

Maui Radiology, which had provided radiology services at Maui Memorial since 2004, had challenged the transition by arguing the hospital violated request for proposal policies in awarding the new contract to Dallas-based RadCare. At the July 11 hearing, Maui Radiology had hoped to get a preliminary injunction against the switch.

Judge Kelsey Kawano of the 2 nd Circuit Court, however, dashed those hopes and said the court lacked jurisdiction over the hospital's procurement process which is a matter of internal policy, reported The Maui News. Kawano also said Maui Radiology hadn’t shown it was likely to prevail on the merits of the case.

The attorney for Maui Radiology requested the judge to stay the ruling dissolving the restraining order pending review by appeals courts, but this request was also denied.

In the request for proposal process, RadCare was selected as the top bidder and Maui Radiology came in last out of four proposals. In its proposal, Maui Radiology sought a $600,000 annual subsidy, which RadCare had not requested, according to The Maui News.