3T Cayman seeks advice from court on termination of HSA contract

(CMR) 3T Cayman is suing The Cayman Islands Health Services Authority for the Grand Court to clarify the termination clause contained in their magnetic resonance imaging services agreement dated June 12, 2012. The October 4 summons was issued after management at the HSA decided to cancel 3T's contract and provide their own MRI services.

The company is asking the court to interpret the clause which defines the period of the agreement. Apparently, there are three possible scenarios that could be interpreted which include:

(1) the agreement was for a period of 10 years and then automatically continues until both parties agree to terminate

(2) the agreement was for. Of 10 years with the parties being able to extend beyond that period and if no agreement reached it would terminate automatically after 10 years

(3) for some other period and/or subject to other rights and obligations of the parties

The company is seeking clarification on how the 10 year period of the contract would actually come to an end. The HSA issued a notice of termination of the agreement on March 18 and the plaintiff is now seeking a declaration as to the meaning and effect of that letter.

They were also seeking a declaration as to the meaning and effect of a letter dated October 21 from the Attorney General on behalf of the HSA which they claimed an entitlement not to renew.

CMR understands that the HSA will now be purchasing their own MRI machine and providing those services that were once outsourced by 3T Cayman. Doctor's Hospital is a shareholder in 3T Cayman with the majority shareholder being Kirk Duval. 3T Cayman is a privately owned entity with Dr. Steve Tomlinson being one of the original investors.

They currently operate out of the HSA facility on the ground floor but exclusive CMR sources indicated that an MRI machine is en route to be installed at Doctor's Hospital facility in a matter of weeks. They provide 3 Tesla MRI exams and diagnostic services which according to their website is the highest level of MRI technology on the market.

Their website states that they have invested “nearly $5 million in technology upgraded MRI and hospital fit-out and is the most advanced in the English-speaking Caribbean.

Sources shared that by purchasing their own high-tech MRI machine the HSA could save millions of dollars over several years.