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ITHACA - Cayuga Medical Center at Ithaca is involved in a dispute with a provider of psychiatric. services that the hospital says cost it millions.
The hospital states in a lawsuit filed in November 2006 that it lost about $2.27 million on operations of its inpatientpsychiatric program in 2004 because of poor management by Horizon Mental Health Management. Horizon, based in Lewisville, Texas, is a contract provider of psychiatric programs.
Cayuga Medical Center hired Horizon to provide psychiatric services at its facility for adults and adolescents in October 2003.
The agreement called for Horizon to provide staff, including a director, community-education manager, and nurse manager.
The company was also to provide marketing assistance, training for hospital staff, recruitment of physicians, and treatment of patients.
Horizon did not follow through, the hospital argues in its suit, which it originally filed in state Supreme Court in Tompkins County. The suit was transferred to federal district court in Syracuse in December.
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