Nashville, Tennessee-based HCA Holdings, Inc. and Dallas, Texas-based Doctors Same Day Surgery Center, Inc. are facing an antitrust suit over their approach to the orthopedic surgical market in Sarasota, Florida.
Can You Guess Which Healthcare Chain Is Facing an Antitrust Suit?
2 min read Premium comments
Secondary#location24
Sarasota, Florida-based Location 24, LLC recently brought the lawsuit in federal court. Location 24 is made up of 12 of the 18 doctors who comprise the Sarasota, Florida-based Kennedy White Orthopedic Center.
Location 24 is making the following allegations against HCA: contract, combination, or conspiracy in restraint of trade in violation of the Sherman Act; violation of Florida law prohibiting restraint of trade or commerce; breach of contract; breach of fiduciary duty; tortious interference with advantageous business relationship; and fraud.
The allegations stem from Location 24’s relationship with HCA. According to the complaint, the two via a partnership created Doctors Same Day Surgery Center (the “surgery center”) in 1995. HCA is the general partner and Location 24 is the limited partner.
Doctors Same Day Surgery Center is an ambulatory surgery center. HCA also owns Doctors Hospital of Sarasota (the “hospital”) which, per the complaint, is located adjacent to the surgery center. Location 24 claims the two are in direct competition with each other.
In the complaint, Location 24 alleges that HCA’s intent is to “monopolize the orthopedic surgery market.” Location 24 claims that HCA is doing this by restricting the surgery center’s “availability for surgical procedures” while allowing the hospital to schedule procedures during desired timeslots.
Location 24 also asserts that HCA is abusing its market power by “manipulating market salaries for nurses and staff for its own benefit.” Location 24 claims that this prevents the surgery center from “hiring quality nurses and surgery techs by refusing to offer competitive salaries.” Location 24 further alleges that the hospital is allowed to offer competitive compensation.
Additionally, Location 24 details its claims that HCA is refusing to maintain and modernize the surgery center. This, Location 24 purports, is in violation of its contract with HCA.
In the complaint, Location 24 contends that HCA’s “scheme inevitably breaks down HCA’s partners’ medical practices to ensure that the number of market participants has been reduced, enabling HCA to control the specific specialty surgical market in the region.”
As of the date of this article, HCA had not yet filed a response.
React:
Discussion
This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?
Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.
We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.
Join the conversation
Orthopedic professionals are discussing this. Sign in and upgrade to read every comment and add your voice.