Emdeon sues former exec for alleged non-compete violation

Company says ex-SVP's new gig violates five agreements

Revenue cycle management company Emdeon says a former senior vice president is in violation of no less than five non-compete agreements he signed before leaving to take the top job at another company.

In a suit filed originally in Davidson County Chancery Court, but recently removed to the U.S. District Court for Middle Tennessee, Nashville-based Emdeon alleges Terry Cameron, former senior VP for operations for subsidiary Envoy, breached agreements made with his ex-employer by taking the job as president and COO for Recondo, a Colorado-based company that provides revenue-cycle management for health care companies, primarily through cloud computing.

Emdeon alleges Cameron signed five "trade secret and proprietary information agreements," starting with his hiring in 2010 and throughout his employment, with later versions signed as a condition of Cameron receiving stock options. Each of these agreements prohibited Cameron from working for "any enterprise engaged in providing revenue and payment cycle management ... for healthcare providers, patients and payers" for a period of one year after leaving Emdeon.

Cameron left Emdeon in late March and began working for Recondo in May.

In numerous emails attached to the complaint, Cameron's attorneys emphasize his role at Recondo is in "oversight for operations" only and that he has no "management responsibilities for sales, marketing or product management." Cameron's attorneys argued that because Envoy is self-contained and because Cameron dealt only with payers, his position at Recondo — which deals with providers — is not in violation of the non-competes.

Last week, Cameron, who at the time of the filing was a citizen of Illinois but now lives in Colorado, requested the case be removed from Davidson County Chancery to district court because of diversity of citizenship. Emdeon is asking a judge to enjoin Cameron from "further violation of the non-compete convenant for 12 months from the date the defendant ceases to violate the non-compete or from the entry of the court order."