US: Medical firms accused of price fixing

Two recent agreements that boosted CHI Franciscan Health’s presence on the Kitsap Peninsula in the state of Washington brought rising prices for patients and reduced competition, according to a new lawsuit filed by the state attorney general.

Attorney General Bob Ferguson wants the court to undo the agreements between Franciscan and two medical firms: WestSound Orthopaedics and The Doctors Clinic. The lawsuit filed Thursday, August 31, names all three as defendants.

“These transactions were intentionally made to decrease competition, increase prices, and pad CHI Franciscan’s bottom line at the expense of its patients,” Ferguson said in a news release.

The lawsuit, filed under seal in US District Court for the Western District of Washington in Tacoma, said the agreements violate state and federal antitrust laws.

CHI Franciscan Health Vice President for Communications and Government Affairs Cary Evans said in an emailed response that Franciscan, WestSound Orthopaedics and The Doctors Clinic “attempted to negotiate in good faith with the AG to try to respond to his concerns without the need for him to file a lawsuit and cause disruption in the local health care community.”

Franciscan will “vigorously defend” its case and “believes that the AG’s allegations are misguided and unfounded,” Evans wrote.

Full Content: Biz Journals

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.