Carolinas HealthCare System, North Carolina's largest hospital chain, has filed a motion asking a federal court to dismiss a U.S. Justice Department lawsuit alleging the system illegally imposes contract requirements on insurers to hinder competition.
In a 15-page brief filed with the motion, the health system denied creating contracts with insurers that prevent them from entering into agreements with other systems or that it uses its market power to stop insurance companies from entering into other agreements.
The 10-hospital system did admit, however, that it has tiered networks with insurers that “control the vast majority of the commercial insurance market.” Carolinas has contracts with four insurers that cover 85% of commercially insured residents in the Charlotte area, according to the Justice Department.
