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US: St. Francis cleared in rival’s US$300 million antitrust suit

By  |  June 13, 2017

In an opinion written by Judge Posner, the Seventh Circuit on Friday gave its stamp of approval to [a] federal appeals court refused to revive a $300 million lawsuit accusing St. Francis Medical Center of violating antitrust laws by carving other Peoria, Ill., providers out of its exclusive contracts with commercial insurers.

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    The Court affirmed OSF Saint Francis Medical Center’s summary judgment win in a US$300 million antitrust suit brought by a smaller competitor alleging unlawful exclusive dealing and attempted monopolization. Methodist Health Svcs. v. OFS Healthcare System, Saint Francis Med. Case No. 16-3791 (7th Cir. June 9, 2017).

    In his opinion affirming the legality of the exclusive contracts, Judge Posner observed that “competition for the contract is a form of competition that antitrust laws protect rather than proscribe.”

    In a decision that is considered a notable precedent for hospital and provider networks—particularly those with substantial market shares—that wish to negotiate narrow and exclusive network agreements with mayors.

    Full Content: Modern Health Care

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