Feds double down on lawsuit against Carolinas HealthCare

The U.S. Justice Department urged a North Carolina federal judge to take a closer look at Carolinas HealthCare System's steering provisions in insurer contracts and to ignore the health system's pleas for a quick escape from the government's lawsuit. Although the feds recently suffered a loss in a similar contract arrangement suit involving American Express in the 2nd U.S. Circuit Court of Appeals, the Justice Department says that decision holds no bearing on the Carolinas case and doesn't undermine its challenge against these deals. The Justice Department alleges that the 10-hospital system based in Charlotte, N.C., used anti-competitive steering provisions in its contracts with four major North Carolina insurers to ensure patients would come to their hospitals. Aetna Health of the Carolinas, Blue Cross and Blue Shield of North Carolina, Cigna Healthcare of North Carolina and UnitedHealthcare of North Carolina hold 85% of the commercial insurance market in the Charlotte area, according to the feds.

—Erica Teichert

HCA Holdings is selling its interest in Oklahoma University Medical Center and OUMC Edmond to an affiliate of the University Hospitals Authority and Trust for $750 million, the organizations announced last week. The transaction also includes an early termination of HCA's lease of Children's Hospital at Oklahoma University Medical Center in Oklahoma City and an associated joint operating agreement. In place of HCA, SSM Health and University Hospitals Authority and Trust will share governance and financial responsibility over a newly created healthcare network. SSM will manage day-to-day operations of the network. HCA and the hospital authority will end their relationship in the first half of next year. Both transactions are subject to regulatory approvals and are expected to be finalized in the first half of 2017.

—Dave Barkholz