The Ninth Circuit Court of Appeals’ decision affirms a previous U.S. District Court ruling that cleared Providence Health System-Oregon, Providence Health Plan and Providence Plan Partners (Providence), which were accused in the suit of violating § 2 of the Sherman Act, 15 U.S.C. § 2.
The imaging providers ? East Portland Imaging Center, Body Imaging and Women’s Imaging ? “failed to create a factual issue regarding the barriers to entry and expansion in the diagnostic imaging market,” wrote the court in a memorandum on the decision. Nor did they provide “evidence of the scope and impact of market conditions, including the ability of Providence to control patients and physician referrals through its insurance products, that would deter new entry while allowing Providence to earn monopoly returns.” Further, the plaintiffs admitted there exists a glut of imaging capacity in the Portland area.
According to a published report, the initial suit claimed that Providence was consolidating imaging services, including X-ray, ultrasound, mammography, MRI, CT scanning and nuclear imaging, after the health system formed two imaging joint-ventures and terminated services with the plaintiffs.
Despite this, however, the imaging groups “failed to create genuine issue of material fact as to whether there are barriers to entry and expansion in the relevant diagnostic imaging market, the district court properly granted summary judgment in favor of Providence,” the court concludes in the memorandum.
