Litigation & Enforcement Highlights | Source Shorts

Washington State AG files suit against Franciscan Health System

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 Protection Act.   The AG asks for equitable disgorgement from illegal financial gains obtained from the transactions. The attempt to unwind a previously consummated merger and several affiliation agreements is a bold step in health care antitrust, and one that The Source will be keeping a close eye on!

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