Litigation & Enforcement Highlights
Healthcare Consolidation Q4 2022: Cross-Market Mergers Continue Apace
Amy Y. Gu, Managing Editor December 15, 2022
2022 has been an active year in healthcare consolidation as well as for merger challenges and enforcement. As we approach the year end, healthcare deals continued as many entities seek to close the transactions before the new year. Increasingly, as seen in the 4th quarter, healthcare deals are shifting to cross-market transactions, making review and enforcement efforts more challenging. In case you missed it, this final Litigation and Enforcement Highlights of the year will help you catch up on some of the cross-market deals in Q4 2022 that caught our …
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The Source and Various Stakeholders File Amicus Briefs Urging 9th Circuit to Reverse Jury Verdict of Sidibe v. Sutter Health on Appeal
Amy Y. Gu, Managing Editor November 15, 2022
See case page: Sidibe v. Sutter Health After the state action UEBT v. Sutter Health settled prior to trial, the Sidibe class action in federal court continued to shine the spotlight on hospital giant Sutter Health. In March 2022, a jury verdict in the Northern District Court of California cleared Sutter of anticompetitive allegations in this decade-long case. Class plaintiffs swiftly filed an appeal in the Ninth Circuit Court of Appeals to overturn the decision, citing inaccurate jury instructions and exclusion of key evidence that impacted the final outcome of …
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DOJ’s Challenge of the UnitedHealth and Change Healthcare Merger: What Went Wrong and What Does it Mean?
Amy Y. Gu, Managing Editor October 17, 2022
The highly scrutinized merger of UnitedHealth Group and Change Healthcare went through in October 2022 shortly after obtaining court approval despite a legal challenge from federal and state regulators. The deal drew criticisms from industry groups and stakeholders largely amid concerns that it would give UnitedHealth access to sensitive data to gain competitive advantage in the market. The Justice Department-led challenge to the merger was seen as a test of the Biden administration’s intensified antitrust enforcement agenda, but the DOJ failed to convince the court to block the allegedly anticompetitive …
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HCA Healthcare and Mission Health Face Wave of Lawsuits for Anticompetitive Contracting
Amy Y. Gu, Managing Editor September 14, 2022
Anticompetitive contracting practices have been under antitrust enforcement scrutiny from both state regulators and private parties in recent years. In California, hospital giant Sutter Health faced several high-profile lawsuits for its alleged anticompetitive contracts. While the state case led by the California attorney general settled earlier this year, the federal class action is on its way to the 9th Circuit appeal. HCA Healthcare, a large health system in North Carolina, appear to be the next health system under litigation fire for similar practices. Three separate actions have been filed by …
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Final Settlement of BCBS Antitrust Class Action Hopes to Increase Competition Among Insurers
Amy Y. Gu, Managing Editor August 15, 2022
This month, a long-standing private antitrust lawsuit against Blue Shield/Blue Cross came to a conclusion after a decade of litigation. After a favorable court ruling for the class plaintiffs on a key legal issue, the final settlement agreement received approval in federal court and provides both monetary and injunctive relief that is intended to boost competition in the insurance market. Filed in 2012 by employers and individual policyholders with Blue Cross/Blue Shield (BCBS) coverage, the putative class action alleges that BCBS entities conspired to divvy up insurance markets all over …
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California AG Considers Cross-Market Effects in Merger Review and Conditional Approval of USC Health System and Methodist Hospital Affiliation
Amy Y. Gu, Managing Editor July 14, 2022
As federal agencies including the FTC and DOJ step up antitrust enforcement efforts in response to Biden’s executive order to revamp competition in the healthcare market, more and more healthcare entities are turning to less traditional consolidation that did not previously trigger antitrust scrutiny, such as “cross-market” mergers, which involve providers that do not directly compete in the same geographic market.[1] This month in Litigation and Enforcement Highlights, we take a look at the latest merger review and conditional approval of a proposed cross-market transaction in California, the third of …
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Q2 2022: Antitrust Enforcement Actions Flourish Against Healthcare Consolidation and Anticompetitive Contracting
Amy Y. Gu, Managing Editor June 14, 2022
It’s been a busy month in healthcare antitrust land, both for federal regulators and private plaintiffs, as we saw an explosion of enforcement actions challenging both proposed mergers and anticompetitive conduct that stemmed from previous mergers. From New Jersey to Utah, large health systems such as HCA are being increasingly scrutinized and coming under fire for garnering and using their market power in anticompetitive ways. Merger Challenges Fresh from its appeals court win in the Hackensack Meridian and Englewood merger challenge, the Federal Trade Commission (FTC) is continuing its …
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[Sutter Case Watch] Sidibe v. Sutter Health Class Action Headed to Appeal
Amy Y. Gu, Managing Editor May 16, 2022
See case page: Sidibe v. Sutter Health The antitrust action against Northern California hospital giant Sutter Health is a saga that continues to give and capture the attention of antitrust regulators and stakeholders around the country. After Sutter’s landmark settlement with the California attorney general in state court in 2019 and a jury verdict in March 2022 clearing Sutter of anticompetitive allegations in a decade-long federal class action, many thought the Sutter chapter had finally closed, albeit somewhat anti-climatically. Not so fast. In late April, plaintiffs in the federal action …
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FTC Successfully Blocks Hackensack Meridian Merger with Big Win in 3rd Circuit Appeal
Amy Y. Gu, Managing Editor April 15, 2022
In the latest healthcare antitrust action, Hackensack Meridian and Englewood Healthcare officially terminated their merger plans after the Third Circuit Court of Appeals handed down a big win for federal regulators in the merger challenge. Last month, after multiple amicus briefs filed by various stakeholders in the appeals court, a three-judge panel affirmed the lower court’s preliminary injunction to block the merger, holding that the Federal Trade Commission (FTC) established a prima facie case showing that the proposed merger is likely to substantially lessen competition and that the hospitals’ procompetitive …
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BREAKING: Sutter Wins After Federal Jury Trial in Sidibe Class Action
Amy Y. Gu, Managing Editor March 11, 2022
See case page: Sidibe v. Sutter Health After nearly ten years of litigation and a month-long trial in Sidibe v. Sutter Health in the federal district court in San Francisco, a nine-person jury delivered a unanimous verdict finding that Sutter Health did not engage in anticompetitive conduct and did not cause consumers to pay higher prices or premiums as alleged by the class plaintiffs. The jury answered no on two key questions to plaintiffs’ case, that 1) Sutter Health did not use tying practices in its insurer contracts; and 2) …
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