On Jan. 26, Memorial Hermann Healthcare System, in Houston, settled a lawsuit that alleged that the hospital attempted to stop competition by discouraging health insurers from doing business with the physician-owned Town & Country Hospital, which closed in 2007. According to an article in the American Medical News, this settlement could signal increased scrutiny by state officials and offer physicians an alternative in antitrust lawsuits.
According to the article, Memorial Hermann denied any wrongdoing but agreed to pay a $700,000 fine for the cost of the investigation and to a five-year injunction that would prohibit "certain contracting practices."
The case is significant because it marks the first time a state official — in this case, Texas Attorney General Greg Abbott — has filed antitrust action and may give physicians another avenue to fight against anticompetitive practices, according to the article.
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