Powerful Texas Doctor Ruined Colleagues' Practice, Suit Says

Two southeast Texas doctors say a powerful local orthopedic surgeon destroyed their practice because they refused to refer patients to him or help set up a deal between his hospital and a Medicare provider.

Drs. Jorge H. Trevino and James Stewart filed suit in the U.S. District Court for the Southern District of Texas, accusing their landlord, Dr. Ruben Pechero, of racketeering.

Their complaint alleges Pechero and his realtor shuttered the plaintiffs' office after locking them out and then told a local news reporter that they had abandoned their practice and confidential patient files.

The lockout and subsequent news report crippled the plaintiffs' practice and led the Texas Medical Board to investigate them for possible violations of patients' privacy outlined in the Health Insurance Portability and Accountability Act.

Pechero allegedly retaliated against the doctors for refusing to refer orthopedic patients to him or to help him establish a Medicare contract for Doctors Hospital at Renaissance, a 180-bed facility in Edinburg, Texas.

The complaint says Pechero is a "large shareholder" of Doctors Hospital, a facility with a "history of performing unnecessary procedures."

According to the complaint, Pechero demanded that the doctors make the referrals and help him obtain the Medicare contract shortly after they renegotiated the lease for their office space at Rio Grande Regional Hospital.

Pechero allegedly owns the office space at Rio Grande, a 307-bed facility in McAllen, Texas.

When Trevino and Stewart did not perform the referrals or assist with the Medicare deal, Pechero allegedly doubled their rent. He also had realtor Vicki Lynn Chrysler "forcefully" remove the plaintiffs' employees and lock the doctors out of their office Oct. 27.

They were not allowed to enter from that time until December, when Chrysler allegedly invited KRGV-TV Newschannel 5 reporter Alex Trevino and a film crew onto the property.

"The news story depicted an 'abandoned' medical office with patient files opened to expose confidential information" and accused the displaced doctors of "illegal medical practices," the complaint says.

It alleges extortion under the Racketeer Influenced and Corrupt Organizations Act and the Hobbs Act, fraud, invasion of privacy, breach of contract, tortious interference with contract, tortious interference with business relations, intentional infliction of emotional distress, defamation, trespassing, and violation of the Texas Property Code.

The suit names additional defendants Chrysler, Trevino and Newschannel 5 owner Mobile Video Tapes Inc. Newschannel 5 is the ABC affiliate for the Rio Grande Valley in southeast Texas, according to the suit.

The doctors are seeking unspecified treble damages.

To comment, ask questions or contribute articles, contact West.Andrews.Editor@ThomsonReuters.com.