Litigation & Enforcement Highlights
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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[Sutter Case Watch] Jury Trial in Federal Class Action Against Sutter Health Provides Sneak Peek at Alleged Anticompetitive Contracting Practices
Amy Y. Gu, Managing Editor March 4, 2022
See case page: Sidibe v. Sutter Health Northern California hospital giant Sutter Health is again in the spotlight this month as the jury trial began in Sidibe v. Sutter Health in the District Court for the Northern District of California after nearly ten years of litigation. Many may recall the recent antitrust lawsuit led by California attorney general against Sutter Health, UFCW & Employers Benefit Trust (UEBT) v. Sutter Health, which settled in state court on the eve of trial in October 2019. While the settlement sent shockwaves across the …
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BREAKING: DOJ Files Lawsuit to Block United-Change Healthcare Merger
Amy Y. Gu, Managing Editor February 24, 2022
After months of speculation and opposition from industry groups, the Department of Justice (DOJ), along with attorneys general of New York and Minnesota, filed a lawsuit in federal court in the District of Columbia to block the merger of UnitedHealth and Change Healthcare, just days ahead of the February 27 deadline set for the deal to close. According to the DOJ announcement released on February 24, the lawsuit alleges the proposed $13 billion deal would not only harm competition in commercial health insurance markets, but also the market for technology …
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Lifespan-Care New England Merger Hits Roadblock as Rhode Island AG Joins FTC Challenge
Amy Y. Gu, Managing Editor February 23, 2022
Updated February 23, 2022: The entities withdrew their application and abandoned the proposed merger in the face of federal and state antitrust challenge. A temporary restraining order was granted on February 18 halting merger proceedings pending court ruling on the request for preliminary injunction. Rhode Island’s two largest nonprofit hospital systems, Lifespan and Care New England, will face a challenging road ahead to their proposed merger. On February 17, the Federal Trade Commission (FTC) voted to file a lawsuit to block the proposed merger in court. Separately, Rhode Island Attorney …
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Private Enforcement Cases Highlight Consolidation and Anticompetitive Practices in Healthcare Industry
Amy Y. Gu, Managing Editor February 14, 2022
As federal and state agencies ramp up enforcement in healthcare antitrust following the Biden executive order calling for revamped competition in the industry, private entities are also increasingly joining in the action. In this month’s Litigation and Enforcement Highlights, we take a look at a pair of recent private antitrust cases that allege anticompetitive conduct of large hospital systems. Saint Francis Hospital v. Hartford HealthCare (Connecticut) Last month, Hartford HealthCare in Connecticut was hit with an antitrust lawsuit filed in federal court by competitor Saint Francis Hospital, alleging that …
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Litigation and Enforcement Highlights – January 2022
Amy Y. Gu, Managing Editor January 17, 2022
In this first issue of Litigation and Enforcement Highlights of 2022, we bring you a digest of recent merger review activities in healthcare provider transactions and look ahead to important antitrust enforcement actions in consolidation and anticompetitive practices that are pending on the horizon. Healthcare Merger Watch Centene/Magellan Although opposed by many antitrust experts, Centene completed its $2.2 billion acquisition of Magellan Health last week. In California, Centene and Magellan both operate as sellers of behavioral-specific healthcare financing services, pharmacy benefit manager (PBM) services, specialty pharmacy services, and Employee …
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Third Circuit Hears Oral Arguments in High-Stakes Hackensack Meridian Appeal
Amy Y. Gu, Managing Editor December 15, 2021
All eyes are on Hackensack Meridian Health’s proposed acquisition of Englewood Healthcare Foundation as the 3rd Circuit Court of Appeals heard oral arguments in the FTC challenge last week. As healthcare entities continue to actively pursue mergers and affiliations during —and in part driven by— the coronavirus pandemic, the outcome of this New Jersey merger may have significant implications for both federal and state antitrust enforcement across the country. In this post, The Source brings you up to speed with the latest developments leading up to the high-stakes appeal and …
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FTC Restores and Implements Prior Approval Rule with Provision in DaVita Divestiture Order
Amy Y. Gu, Managing Editor November 15, 2021
In July 2021, President Biden’s executive order called on federal agencies to strengthen antitrust enforcement in the healthcare industry to promote and revitalize healthcare competition and price transparency in the U.S. In response to the call to action, the agencies, particularly the Federal Trade Commission (FTC), have mobilized and stepped up their efforts by providing additional guidance and oversight of consolidation in the healthcare market. In this issue of Litigation and Enforcement Highlights, we take a look at the FTC’s reinstatement and implementation of the prior approval rule, the latest …
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California Attorney General Imposes Conditions of Price Cap and Prohibition of Anticompetitive Practices on Cross-Market Acquisition in Northern California
Amy Y. Gu, Managing Editor October 14, 2021
California is one of the leading states in healthcare antitrust enforcement. Following the footsteps of former California Attorney General Xavier Becerra, who led the antitrust lawsuit against northern California hospital giant Sutter Health, the new attorney general Rob Bonta continues to exercise the AG’s expansive authority with aggressive enforcement actions in the California provider market. Earlier in the summer, the AG’s office settled a lawsuit filed by Cedars-Sinai Health System and Huntington Memorial Hospital, with revised competitive impact conditions on the cross-market affiliation in Southern California to address potential harms …
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Hackensack Meridian/Englewood Merger Heads to Appeals Pending FTC Trial
Amy Y. Gu, Managing Editor September 14, 2021
Hackensack Meridian Health’s proposed acquisition of Englewood Healthcare Foundation is the latest case to watch amidst increased federal antitrust scrutiny of healthcare mergers. While the FTC’s preliminary injunction against the merger was approved by the New Jersey district court early last month, the entities continue to put up a fight pending the FTC administrative trial set for October. In this post, The Source provides a recap of the latest development in the case and a preview of what’s to come. FTC Challenge to Block Merger Hackensack Meridian Health, formed …
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