Michigan hospitals have asked a federal judge to dismiss allegations of anti-competitive behavior leveled by the city of Pontiac, Mich.
Mich. hospitals want city's lawsuit thrown out
Ascension Health and 21 hospitals were sued by the city in January along with Blue Cross and Blue Shield of Michigan over contract clauses to guarantee the insurer lower rates than its competitors. The hospitals claim the city's allegations are too weak for the lawsuit to continue, according to a motion filed in U.S. District Court in Detroit. The motion dismisses various allegations by Pontiac as “threadbare” and “vague.”
Pontiac's lawsuit followed the October antitrust complaint brought by the Justice Department and Michigan attorney general, which alleged the Michigan Blues most-favored-nation contract clauses shut out competition and raised prices. The insurer rejected the claims and asked the court to throw out the lawsuit.U.S. District Court Judge Denise Page Hood did not issue a decision at a Tuesday hearing on the insurer’s motion to dismiss the Justice Department lawsuit.
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