A federal appeals court reinstated Pittsburgh-based West Penn Allegheny Health System's antitrust lawsuit against University of Pittsburgh Medical Center and regional insurer Highmark yesterday after it was dismissed by a U.S. District judge more than a year ago, according to a Pittsburgh Tribune-Review report.
West Penn claims that Highmark and UPMC conspired to reduce competition, raise prices and create a monopoly in the region, resulting in antitrust injury to West Penn and other area hospitals.
After being dismissed by U.S. District Court Judge Arthur Schwab last October, the third circuit appeals court found ample ground for the case to proceed yesterday, including allegations of anti-competitive hiring practices by UPMC and claims that UPMC forced community hospitals to refer oncology patients to the medical center or face consequences of UPMC building in their communities.
Also, UPMC allegedly made several false statements about West Penn's financial health to potential investors, causing the system to pay artificially inflated financing costs on its debt.
A spokesperson for UPMC insisted West Penn’s claims lacked legal and factual grounds.
Read the Pittsburgh Tribune-Review report on the reinstatement of West Penn Allegheny’s suit against UPMC and Highmark.
Read more about West Penn Allegheny:
-West Penn Allegheny Reports Operating Loss of $89.9M
-Consolidation Leaves West Penn Allegheny Cutting 400 Pittsburgh Employees
-Struggling West Penn Allegheny Focuses on Urgent Care, Outpatient Centers
West Penn claims that Highmark and UPMC conspired to reduce competition, raise prices and create a monopoly in the region, resulting in antitrust injury to West Penn and other area hospitals.
After being dismissed by U.S. District Court Judge Arthur Schwab last October, the third circuit appeals court found ample ground for the case to proceed yesterday, including allegations of anti-competitive hiring practices by UPMC and claims that UPMC forced community hospitals to refer oncology patients to the medical center or face consequences of UPMC building in their communities.
Also, UPMC allegedly made several false statements about West Penn's financial health to potential investors, causing the system to pay artificially inflated financing costs on its debt.
A spokesperson for UPMC insisted West Penn’s claims lacked legal and factual grounds.
Read the Pittsburgh Tribune-Review report on the reinstatement of West Penn Allegheny’s suit against UPMC and Highmark.
Read more about West Penn Allegheny:
-West Penn Allegheny Reports Operating Loss of $89.9M
-Consolidation Leaves West Penn Allegheny Cutting 400 Pittsburgh Employees
-Struggling West Penn Allegheny Focuses on Urgent Care, Outpatient Centers