Judge favors St. Mark's Hospital in antitrust suit

0 Comments | Deseret News (Salt Lake City), Jan 30, 2004 | by Linda Thomson Deseret Morning News

St. Mark's Hospital did not violate Utah's antitrust laws by allegedly trying to keep managed health-care organizations from contracting with Rocky Mountain Medical Center, a judge has ruled.

Third District Judge Dennis Frederick, in a two-page ruling issued Tuesday, said Rocky Mountain Medical Center failed to provide sufficient evidence to show managed health-care organizations (MCOs) had been discouraged by St. Mark's from contracting with Rocky Mountain.

"Indeed, to the contrary, contracts with St. Mark's expressly permitted the MCOs to contract with Rocky Mountain," Frederick's ruling said.

The judge noted Rocky Mountain's own industry expert said contracts such as those involved in this case between MCOs and service providers that create "limited networks" are commonplace, including penalty provisions of higher fees if they also contract with other service providers.

"Indeed, what is at issue in an antitrust case is not whether the unlawful conduct substantially and adversely affected competitors, but rather competition in the market," Frederick's ruling said.

The judge said this had not been demonstrated on marketplace competition in this particular case.

Rocky Mountain filed suit in 2000 against St. Mark's and its parent firm, HCA Inc., alleging that St. Mark's had tried to close Rocky Mountain by employing what amounted to a group boycott.

The lawsuit contended St. Mark's pressured managed health-care companies to avoid contracting with Rocky Mountain or face enormous rate increases that could total millions each year.

Representatives for St. Mark's denied the allegations.

"We are pleased that the court confirmed our contention that all along our business practices were legal and ethical," said Deb Reiner, spokeswoman for St. Mark's.

Tomi Galin, a spokeswoman for IASIS, the parent company of Rocky Mountain Medical Center, issued this statement late Tuesday: "IASIS is evaluating its options related to this matter, and until we have determined our next course of action, we will not have anything further to say publicly about this case."

E-mail: lindat@desnews.com