Antitrust Enforcement
Litigation and Enforcement Highlights – February 2018
Amy Y. Gu, Managing Editor February 8, 2018
In this edition of the Source Litigation and Enforcement Highlights, we review 1) an action against Allergan’s anticompetitive practice concerning its dry eye treatment Restasis, 2) the final conclusion to a highly contested West Virginia hospital merger, 3) an antitrust suit between Marion Healthcare and Southern Illinois Healthcare, and 4) another proposed Partners Healthcare merger. Shire Defends Its Antitrust Suit Against Allergan In response to Allergan’s motion to dismiss an antitrust suit filed in New Jersey federal court, Shire filed a brief on January 24, 2018, blasting Allergan’s claim that …
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Litigation and Enforcement Highlights: January 2018
Amy Y. Gu, Managing Editor January 16, 2018
Beginning in the New Year, the Source will compile monthly litigation and enforcement highlights to keep our readers updated on developments in the area of healthcare mergers and acquisitions, antitrust actions, as well as other healthcare price and competition cases. This month, we discuss FTC’s win in a North Dakota hospital merger, Louisiana AG’s antitrust suit against GSK, and the review of a pair of Massachusetts healthcare mergers. FTC Wins Temporary Injunction against Merger of North Dakota Hospitals U.S. District for the District of North Dakota Magistrate Judge Alice Senechal …
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Private Antitrust Litigation in Healthcare Summit
Amy Y. Gu, Managing Editor December 14, 2017
The Source recently hosted an event on private antitrust litigation in healthcare at our home of UC Hastings College of the Law. The event brought together litigators, economists, and academics for an afternoon of lively discussion to share the challenges of and tips for litigating in this area. It was an opportunity for the type of interdisciplinary exchange that is at the heart of the Source’s mission. As a forum for resource and discussion of healthcare price and competition issues, the Source hopes to host additional events in the future …
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Healthcare Companies with a Conscience: How Benefit Corporations Can Reduce Healthcare Costs
Source Fellow November 9, 2017
By: Katie Beyer, Student Fellow As healthcare costs continue to rise from almost every angle, quality healthcare and treatment often come with a lofty price tag. Survival of private healthcare providers is contingent upon optimizing profits, such that a company’s motivation is driven by shareholder value instead of commitment to social responsibility. Good health at a fair price is often not the primary corporate goal for healthcare companies, but what if it could be? A benefit corporation is a new legal tool currently available in 33 states and allows private companies …
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Washington State AG files suit against Franciscan Health System
Katie Gudiksen, Senior Health Policy Researcher September 12, 2017
The Washington State AG filed suit to thwart and unwind Franciscan Health Systems (FHS) most recent expansion attempts alleging violation of both state and federal antitrust laws. In a rarely seen antitrust enforcement action, the Washington AG’s office is asking the court to unwind FHS’ 2016 acquisition of WestSound Orthopaedics for violation of Section 7 of the Clayton Act and the Washington Consumer Protection Act and several affiliation agreements from 2016 between The Doctors Clinic and FHS for violation of Section 1 of the Sherman Act and the Washington Consumer …
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Class Certification Granted in UFCW & Employers Benefit Trust v. Sutter Health
Anna Zaret, Managing Editor August 22, 2017
See UFCW & Employers Benefit Trust v. Sutter Health case page. We have previously blogged about a key California case brought by self-funded payers against Sutter Health, the dominant health care provider in Northern California, UFCW &|Employers Benefit Trust v. Sutter Health. Last week, the plaintiffs overcame a major hurdle in litigation when the court granted class certification. To remind you, UEBT filed this class action on behalf of itself and other self-funded payers. The defendants in the case are Sutter and the group referred to as “Network Vendors,” which are the …
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Seventh Circuit Refuses to Revive a $300 Million Antitrust Lawsuit Against St. Francis Medical Center
Source Fellow July 25, 2017
By: Katie Beyer, Student Fellow Saint Francis Medical Center is the largest medical provider in the Peoria area, providing 616 hospital beds and a wide variety of inpatient services. Methodist Medical Center is about half the size, providing only 330 hospital beds. Saint Francis has exclusive contracts with four insurance companies – Aetna, Blue Cross and Blue Shield of Illinois, Health Alliance, and Humana – that prohibit the insurers from forming contracts with Saint Francis’ competitors. In 2013 Methodist sued Saint Francis, alleging that these exclusive contracts violate the Sherman Act …
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Update: D.C. Circuit Court of Appeals Upholds Decision Blocking Anthem-Cigna Merger
Anna Zaret, Managing Editor May 10, 2017
On April 28, the District of Columbia Circuit Court of Appeals issued its decision upholding an order blocking the proposed merger of health insurers Anthem and Cigna. In the 2-1 decision, the Circuit Court ultimately agreed with the District Court’s decision that Anthem did not show the “extraordinary efficiencies necessary to offset the conceded anticompetitive effects of the merger.” Anthem has now filed a Petition for Certiorari with the United States Supreme Court. Below, we summarize the Circuit Court decision that Anthem is asking the Supreme Court to reconsider, and …
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Academic Articles & Reports Roundup: April 2017
Anna Zaret, Managing Editor May 4, 2017
Happy May! This month’s Roundup includes articles about 1) prescription drug competition and generic delay|2) the “Big Insurance” merger cases|and 3) the effect of the ACA’s risk adjustment and reinsurance programs. In addition to the articles highlighted below, be sure to check out our recent blog post about Public Agenda’s report by David Schleifer, Rebecca Silliman, and Chloe Rinehart on how people use and find health care price information. Prescription Drug Competition &|Generic Delay In A Citizen’s Pathway Gone Astray — Delaying Competition from Generic Drugs (New England Journal of Medicine), …
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Three Things to Know About the Competitive Health Insurance Reform Act
Anna Zaret, Managing Editor April 5, 2017
On March 22nd, House Resolution 372, known as the Competitive Health Insurance Reform Act, passed in the House by a vote of 416 to 7. The bill repeals antitrust exemptions for health insurers created by the McCarran-Ferguson Act of 1945 (15 U.S.C. §§ 1011-1015) (“McCarran-Ferguson”). Unfortunately, despite bipartisan support for this legislation, it is unlikely to significantly improve competition in health insurance markets. The legislation is unlikely to improve health insurance market concentration, or create a robust market for health insurance sales across state lines, despite GOP hopes. The legislation …
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