OSF HealthCare Earns Victory In Appellate Court

OSF HealthCare

The Seventh Circuit Court of Appeals has sided with OSF HealthCare in a four-year-old antitrust lawsuit.

Methodist Health Services Corporation filed suit against OSF in 2013, alleging OSF attempted to limit competition and inflate prices in obtaining contracts with insurers.

A Rock Island federal court ruled in favor of OSF HealthCare in 2016 and dismissed all claims. Methodist appealed the decision.

The three-judge appellate court panel ruled there was no evidence OSF’s exclusive contracts had “a significant exclusionary effect,” since most the contracts expire every year or two, giving other hospitals such as Methodist, an opportunity to outbid OSF.

The ruling also states, “Methodist is not the representative of any insurer or of any consumer. (Methodist) is simply an unsuccessful competitor with a hospital (OSF) that offers patients insured by health insurance companies more health care than it does.”

“OSF HealthCare is pleased the Court agreed with our position,” said OSF HealthCare CEO Keith Schoeplein. “As we stated from the beginning, we were confident OSF HealthCare fully complied with all antitrust laws and regulations while providing high-quality health care throughout the region. We look forward to continuing to meet the health care needs of the communities we serve.”

Meanwhile, UnityPoint Health-Methodist expressed displeasure with ruling.

“We disagree and are disappointed in the appellate court’s decision,” said Debbie Simon, UnityPoint’s regional president and CEO. “We remain committed to serving patients across our region and are proud to be a part of the local healthcare community.”

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