CHI Franciscan Health settles lawsuit alleging 2 physician group deals were illegal — 6 details

Tacoma, Wash.-based CHI Franciscan Health and two physician groups reached a settlement with the state of Washington over a lawsuit claiming the organizations' arrangements violated antitrust laws, according to the Kitsap Sun, part of the USA Today Network.

What you should know:

1. A trial regarding the lawsuit was stricken because the parties gave notice that they reached a resolution. Details of the settlement weren't disclosed.

2. In 2017, Attorney General Bob Ferguson's office filed a lawsuit challenging two deals: CHI Franciscan's July 2016 acquisition of Silverdale, Wash.-based WestSound Orthopaedics and its September 2016 professional services agreement with Kitsap, Wash.-based The Doctors Clinic.

3. The latter agreement stipulated The Doctors Clinic would remain an independent entity but provide services solely to Franciscan Medical Group. CHI Franciscan bought The Doctors Clinic's ASC, imaging and laboratory services.

4. The attorney general's office alleged the arrangements would squander local competition while hiking prices for payers and patients in a way that amounted to an illegal price-fixing scheme.

5. Representatives for WestSound Orthopaedics and The Doctors Clinic told the Kitsap Sun they had separately pursued partnerships with CHI Franciscan to alleviate financial distress and gain the resources necessary to continue accepting patients.

6. The state and providers involved have until April 29 to file "dismissal/settlement" paperwork.

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