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IN THE COURT OF CHANCERY OF THE STATE OP DELAWARE
IN AND FOR NEW CASTLE COUNTY
GILBERT M. KATZ, M.D. >
and PSYCHIATRIC SPECIALTY GROUP, )
Plaintiffs, ; CivilActionNo. )-?~13'c
V. ;
> Non-Arbitration Case
MHM EXTENDED CARE SERVICES, INC.,
;
Defendant. >
COMPLAINT
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Plaintiff, Gilbert M. Katz, M.D. and Psychiatric Specialty Group, by their undersigned
counsel, hereby allege as follows:
1. Plaintiff Gilbert M. Katz, M.D. is an individual residing in the state of Tennessee.
He is a physician specializing in psychiatry.
2. PlaintiffPsychiatric Specialty Group ("PSG") is aTennessee professional
formed to provide rnental health services in the state of Tennessee.
3. Defendant, MHM Extended Care Services, Inc. ("MHM"), is aDelaware corporation
which is or was in the business of managing certain aspects ofhealth care providers. On information
and belief, MHM was dissolved in or about August, 1999.
4. Plaintiffs and defendant are parties to a written "Management Services Agreement,"
and related "Employment Agreement," both dated as of March 1, 1997, as amended thereafter.
SNIPPETS:
IN THE COURT OF CHANCERY OF THE STATE OP DELAWARE
Plaintiff, Gilbert M. Katz, M.D. and Psychiatric Specialty Group, by their undersigned
formed to provide rnental health services in the state of Tennessee.
Defendant, MHM Extended Care Services, Inc., is aDelaware corporation
which is or was in the business of managing certain aspects ofhealth care providers.
Plaintiffs and defendant are parties to a written "Management Services Agreement,"
Under the aforesaid Management Services Agreement and Employment Agreement,
MHM agreed to indemnify plaintiffs and provide plaintiffs with a defense to certain types of
of suspected overpayments of charges for medical services that were paid or reimbursed by
Medicare.
MHM's refusal to defend and indemnify plaintiffs constitutes a breach of MHM's
obligations to the plaintiffs under the aforesaid Management Services Agreement and Employment
MHM's breaches of its contractual obligations have damaged plaintiffs in an amount
damages to plaintiffs in the amount of $728,244.40 or more, plus interest thereon
Chancery to approve MHM's plan of dissolution, and that MHM will make payments to creditors
providing for the plaintiffs' claim against MHM, and plaintiffs lack adequate remedies at law
Enter a declaratory judgment that MHM has breached its contractual obligations to
of $728,244.40, or such other amount as may be determined at trial, plus pre-judgment and
Of Counsel:
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