Lutheran, ex-CEO settle lawsuit

"Courtroom Gavel" by Joe Gratz, public domain

FORT WAYNE, Ind. (WOWO): A legal battle between Lutheran Health Network and former CEO Brian Bauer is over.

In a joint statement released Saturday, Lutheran Health and parent company Community Health Systems (CHS) say Bauer, who was accused of using his role with the company to lure Indiana University Health to the Fort Wayne market via insider information, “is prohibited from disclosing any confidential, proprietary or non-public information obtained during his employment with Lutheran and from soliciting for employment any Lutheran employees until June 13, 2020.”

Other terms of the settlement will remain confidential. Bauer added he was pleased the dispute is over.

CHS had filed suit preventing Bauer from working for IU Health or any other healthcare provider in northeast Indiana, and claimed Bauer defamed the company. Bauer was CEO of Lutheran Health Network when a group of doctors made a failed bid to buy the local network away from CHS. He was fired shortly afterward.

Read the full statement below:

“Lutheran Health Network and CHSPSC, LLC (“Community Health Systems”) have settled their lawsuit against Lutheran Health Network’s former CEO, Brian Bauer, which alleged that Bauer violated the restrictive covenants of his stock option agreement.”

“Under the terms of the agreement, Bauer is prohibited from disclosing any confidential, proprietary or non-public information obtained during his employment with Lutheran and from soliciting for employment any Lutheran employees until June 13, 2020.  The stock option agreement and the injunction entered by the Williamson County Tennessee Court enforcing that agreement remain in effect.  The parties have agreed to keep other terms of the settlement confidential.”

“Along with its physicians and employees, Lutheran Health Network leadership remains focused on providing comprehensive, high-quality health care services for residents across northeast Indiana and continuing the network’s long history of civic and community engagement.”

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