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Tampa medical institute shuts down, lays off 500 nationwide

Posted at 7:10 AM, Mar 04, 2019
and last updated 2019-03-04 07:10:08-05

TAMPA, Fla. (AP) — A Tampa-based medical institute has closed its doors abruptly, laying off more than 500 employees nationwide.

RELATED: Laser Spine Institute abruptly shuts down nationwide

The Tampa Bay Times reports the reason behind Laser Spine Institute's shutdown was financial. Only three years ago, the company spent $56 million opening its headquarters. It also has facilities in Arizona, Missouri and Ohio.

The company opened in 2005 and advertised minimally invasive spinal procedures, performing nearly 100,000 procedures for neck and back pain.

A recent court opinion on a 2006 lawsuit may have dimmed the company's financial outlook.

A group of doctors from a competing surgical center sued the institute's founders for breach of fiduciary duty, conspiracy, defamation, slander and tortious interference. They won and an appellate court noted in December the proper award amount falls between $264,000,000 and $265,000,000.