Clinic Sued Surgery Partners Over Alleged Data Theft
The lawsuit warns operators about sharing sensitive business metrics during acquisition talks.
Updated on Oct. 14, 2026 in Healthcare
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South Texas Spinal Clinic filed a lawsuit in the Texas Business Court alleging that Surgery Partners misappropriated trade secrets and breached a nondisclosure agreement. The suit, which seeks more than $5 million in damages, claims the larger firm used confidential data obtained during acquisition discussions to recruit the clinic's physicians.
Why it matters
The case highlights the operational risk of sharing proprietary productivity and financial data during potential deal negotiations. Operators should note that the clinic alleges the defendant used this sensitive intelligence to selectively target and recruit the most profitable talent from their practice.
The lawsuit seeks over $5 million in damages following the departure of four physicians from the clinic. Surgery Partners, a national operator with 300 locations across 30 states, reported $3.3 billion in annual revenue and $99 million in net income last year.
The players
South Texas Spinal Clinic
A San Antonio-based medical practice that has been operating for 40 years.
Surgery Partners
A Tennessee-based operator of surgical facilities with 300 locations across 30 states and a market value of $1.9 billion.
Dr. Antonio Webb
A physician who departed the South Texas Spinal Clinic to join the competing practice.
Dr. Dianne Lou
A physician who departed the South Texas Spinal Clinic to join the competing practice.
Dr. Joel Edionwe
A physician who departed the South Texas Spinal Clinic to join the competing practice.
The details
The dispute centers on an acquisition process that began in late 2024 and concluded in December 2025. After accessing the clinic's financial records and physician productivity data under a nondisclosure agreement, Surgery Partners allegedly formed a competing entity, South Texas Surgical & Specialty Group. The clinic claims the national firm used this proprietary information to incentivize four high-producing doctors to resign between April and May 2026.
Timeline
November 5, 2024: The parties signed a nondisclosure agreement.
December 2025: Surgery Partners terminated acquisition negotiations.
March 2026: Surgery Partners registered the competing practice name.
April 17, 2026: Dr. Joel Edionwe departed the clinic.
May 31, 2026: Dr. Antonio Webb, Dr. Dianne Lou, and Dr. Diane McShane departed the clinic.
Market Landscape
This litigation highlights the risks inherent in the due diligence process when disclosing proprietary business data to larger industry competitors. It follows a pattern of high-stakes disputes where confidential operational intelligence is allegedly leveraged to gain an unfair advantage in local medical markets.
Owners should review the scope and enforcement mechanisms of nondisclosure agreements before initiating acquisition talks with larger industry peers. Ensure all data-sharing during due diligence is narrowly defined to prevent the potential use of sensitive productivity metrics for future competitor recruitment.
The takeaway
The case underscores the necessity of robust, restrictive covenants when opening your books to prospective buyers. Operators should verify that all nondisclosure agreements explicitly prohibit the use of financial and physician data for internal competitive development or recruitment purposes.
Further reading
For more on industry compliance, visit Healthcare.
Source note: This article includes information reported by San Antonio Express-News.
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Should companies be trusted with proprietary data during confidential acquisition negotiations?
