Saying that PeaceHealth, Bellevue, Wash., had not acted anti-competitively, an appeals court overturned a $16.2 million verdict against PeaceHealth in a 2003 antitrust lawsuit involving competing hospitals in Lane County, Ore.
McKenzie-Willamette Medical Center, a 105-bed hospital in Springfield, Ore., sued PeaceHealth, accusing the system of attempting to monopolize the market by illegally bundling services.
PeaceHealth offered deep discounts on tertiary care at its 472-bed Sacred Heart Medical Center in Eugene, Ore., if insurers agreed to make PeaceHealth their sole preferred provider for all services. The 9th U.S. Circuit Court of Appeals in San Francisco rejected the argument that the approach was anti-competitive.
Since the lawsuit was filed, McKenzie-Willamette has become investor-owned with the majority interest held by Franklin, Tenn.-based Community Health Systems . -- by Gregg Blesch
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