A legal row has erupted between Queenstown Medical Centre and a medical centre which opened in the resort yesterday.
QT Pharmacy owner Greg Roberts opened the doors of Midtown Medical in O'Connell's Pavilion, which will be in direct competition with Queenstown Medical Centre on Isle St.
He said Queenstown Medical Centre (QMC) "called in the lawyers" in an attempt to prevent the practice opening.
"They tried to tell us our doctor had a restraint of trade, and that we had poached our nurse," he said, and that Midtown's legal advisers had told QMC to back off.
Midtown has capacity for four doctors but has opened with just one general practitioner, Bruce McKinnon, and one nurse, Hillary Ross. Both are former employees of QMC.
Mr Roberts said Dr McKinnon's contract with QMC had expired in February 2008 but he had been working as a locum on reduced hours since.
QMC's lawyer maintained Dr McKinnon was still obligated to a clause in his contract which prevented him from working for another practice within 40km of Queenstown for three months.
"This attempt to keep us out shows QMC wants to keep their near-monopoly for themselves," Mr Roberts said.
"It smacks of anti-competitive behaviour."
The Queenstown Medical Centre had 80% of the market.
"With reports that the Lakes District Hospital is going to be turned into a partly-privatised facility which may be run by QMC, there is a definite need for alternative options for locals."
QMC has approached the Southern District Health Board to be the primary care provider at its proposed Integrated Family Healthcare Centre.
QMC chief executive Richard Macharg said he had no problem with competition.
However, Dr McKinnon had had an individual employee contract with QMC while working as a locum.
He should have given three months' notice before working for another practice in Queenstown, Dr Macharg said.
Nursing staff were not under the same restraint of trade clause, which was a common way of preventing employees from later using the previous employer's trade secrets or confidential information to aid a competitor.
"If we received three months' notice this wouldn't be an issue. We can't stop anyone from leaving but we expect reasonable notice," he said.
