DOJ, state sue Michigan hospital systems over marketing agreement

The U.S. Department of Justice and Michigan Attorney General’s Office last week filed a civil antitrust lawsuit alleging that four hospital systems in adjacent counties violated the Sherman Act and state law by agreeing to allocate territories for the marketing of competing health care services. The agencies simultaneously filed a proposed settlement to resolve the lawsuit with three of the systems: Hillsdale (MI) Community Health Center; Community Health Center of Branch County; and ProMedica Health System in Toledo. The other system is Jackson-based Allegiance Health. The complaint alleges that Hillsdale entered into agreements with the other three systems to limit marketing of competing health care services. In a statement, Allegiance Health President and CEO Georgia Fojtasek said, “We are disappointed that, despite our cooperation with the Justice Department and the Attorney General’s Office in their investigation, these regulators have misinterpreted Allegiance’s conduct. Allegiance now looks forward to its opportunity in court, confident that when the full facts are known, the court will rule in its favor.”