UPMC blames familiar foe for delay in $12.5M antitrust settlement

Pittsburgh-based UPMC tentatively agreed last week to pay $12.5 million to settle a long-standing antitrust lawsuit. However, the health giant's rival, Pittsburgh-based Highmark, could delay the settlement agreement.

The lawsuit at issue was filed by Whitehall, Pa.-based Royal Mile Co. in 2010. In its complaint, Royal Mile alleges a conspiracy between UPMC and Highmark allowed their for-profit subsidiaries to overcharge customers for premiums by keeping competing insurers out of the local market.

UPMC and Royal Mile entered into a tentative $12.5 million settlement agreement Jan. 28. Although UPMC wants to settle the lawsuit, Highmark was not included in the agreement and intends to move forward with litigation, according to a status report filed Monday.

With their motives no longer aligned, UPMC and Highmark are battling over a few issues in the case. First, the two organizations disagree over whether the settlement between UPMC and Royal Mile can move forward before an October class certification hearing. UPMC claims there is no reason the settlement cannot progress, while Highmark argues it will be directly prejudiced by the proposed settlement schedule.

"To be clear, we do not object to the settlement itself, but merely to the proposal to confirm a settlement class prior to the determination of plaintiff's motion to certify a class for purposes of proceeding with the litigation against Highmark," wrote Highmark in the status report.

The two health giants are also at odds over whether Highmark can seek discovery information from UPMC in light of the tentative settlement agreement.

More articles on healthcare industry lawsuits:

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NJ physician accused of submitting false claims settles for $5.25M

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