Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Hospitals allegedly boycotted radiosurgery center, (Oct 30, 2015)

By Greg Hammond, J.D.

Two hospitals in the Memphis, Tennessee, area agreed to limit doctor referrals to a state-of-the-art radiosurgery center, effectively forcing patients, insurance providers, and the government to pay for more expensive treatment options, according to a complaint filed in the federal district court in Memphis (Radiosurgical Center of Memphis, L.P. v. Methodist Healthcare-Memphis Hospitals, October 29, 2015).

Radiosurgical Center of Memphis, L.P. (RCM) owns and operates a state-of-the-art radiosurgery center that features a Leksell Gamma Knife®—a tool that allows doctors to treat brain tumors and other life threatening brain conditions without making any incision.

RCM filed suit against Methodist Healthcare-Methodist Hospital and The West Clinic, P.C., claiming that after the defendants’ failed attempts to purchase the Center at a below-value price, they reached an agreement between themselves and non-party referring physicians to boycott the radiosurgical center and attempt to drive RCM out of business through anticompetitive means. The alleged boycott represents a contract, combination, or conspiracy in violation of Section 1 of the Sherman Act, RCM claims.

RCM also brought claims for breach of contract, intentional interference with business relationships, breach of non-compete agreement, and specific performance under the services agreement.

The complaint requests: (1) a temporary restraining order and preliminary and permanent injunction to restrain and enjoin the hospitals from interfering with the operation of RCM, operating or managing radiosurgical equipment used for applications in neurology and neurosurgery within a 150-mile radius of Methodist, and from interfering with RCM’s legal obligations under its radioactive material license; (2) an order compelling Methodist to produce books and records needed by RCM to verify billings and collections by Methodist, as well as payment to RCM; (3) treble and punitive damages; and (4) attorney fees, costs, and interest.

The case number is 2:15-cv-02709.

Attorneys: Clarence A. Wilbon (Adams and Reese LLP) and Bradley B. Falkof (Barnes & Thornburg LLP) for Radiosurgical Center of Memphis, L.P.

Companies: Radiosurgical Center of Memphis, L.P.; Methodist Healthcare-Memphis Hospitals; The West Clinic, P.C.

News: Antitrust TennesseeNews