Litigation

Davis et al. v. HCA Healthcare and Mission Health System

Date Filed: August 10, 2021
Status: Pending
District Court: North Carolina Superior Court (Buncombe County) – Case No. 21 CV 03276
Nature of Suit: Antitrust
Defendant Type: Provider
Plaintiff Type: Private
Case Info: https://sourceonhealthcare.org/class-action-lawsuit-in-north-carolina-alleges-monopoly-and-all-or-nothing-contracting-practices/
Court Document: https://drive.google.com/file/d/12MVSCc82L0fwHjrUFg-_JK73TN9OtVgZ/view

The class action lawsuit filed in North Carolina state court against HCA Healthcare and Mission Health alleges anticompetitive practices in violation of the North Carolina Constitution and antitrust and consumer protection laws. The lawsuit follows HCA’s 2019 acquisition of Mission Health in North Carolina, which was approved with conditions by the North Carolina AG, although none of which were competitive impact conditions.

Plaintiffs, who are North Carolina patients, claim that Tennessee-based HCA used market power garnered from the cross-market merger to demand anticompetitive terms in contracts with insurers, including tying, all-or-nothing, anti-steering, and gag clauses, driving up prices and insurance premiums. Plaintiffs point out in the complaint that even prior to the merger, Mission Health was shielded by a state-administered certificate of public advantage (COPA) and used similar anticompetitive tactics. The COPA ended in 2016 and the further consolidation with HCA has culminated in making Mission Health the most expensive hospital system in North Carolina for many procedures.

Plaintiffs seek damages and an injunction to prevent future anticompetitive activity.


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