A U.S. District Court has granted a motion filed by Providence Health System to dismiss a pending antitrust lawsuit brought by EPIC Imaging and Body Imaging Radiology, two Portland, OR-based imaging centers fighting to remain part of an Oregon preferred-provider network.
The suit, originally filed in April 2005, alleged that Providence Health System, also of Portland, is engaged in predatory behavior designed to stifle competition in the field of diagnostic imaging and secure a monopoly. According to the centers, in a hearing held on February 13, Providence acknowledged it is common practice for it to terminate qualified physicians from the preferred provider panels it controls as a way to keep referrals in the system.
Because Providence currently rents its provider panels to over 100 independent (non-Providence) insurance companies, including such payors as Aetna and Cigna, the termination practice denies physicians the opportunity to compete on the basis of service and price for upward of 40% of the Portland market, the centers said.
According to the attorney for EPIC and Body Imaging, the dismissal by District Court Judge Garr King was based solely on a finding that the centers had not provided sufficient evidence that Providence was close to achieving a monopoly. The imaging centers stated that they are confident they can obtain evidence required to refile the lawsuit.
By AuntMinnie.com staff writers
March 23, 2006
Related Reading
Oregon imaging center suit dismisses some claims, December 27, 2005
Oregon imaging centers drop injunction request, June 16, 2005
Oregon imaging centers garner OMA support, May 4, 2005
Imaging centers pick up Portland physicians' endorsement, April 27, 2005
Imaging centers file antitrust suit against Providence Health, April 22, 2005
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