Judge halts ProMedica’s efforts to terminate insurance contracts

Author

Categories

Share

, Judge halts ProMedica’s efforts to terminate insurance contracts

A federal decide Tuesday issued a preliminary injunction stopping ProMedica’s insurance coverage subsidiary from terminating contracts with competing suppliers.

U.S. District Decide Jack Zouhary discovered that the plaintiffs, McLaren St. Luke’s and WellCare Physicians Group, supplied proof to help their argument that Toledo, Ohio-based ProMedica constructed up sufficient market energy to help “no less than an tried monopolization declare.”

ProMedica’s insurance coverage subsidiary Paramount in mid-November sought to terminate its industrial insurance coverage and Medicare Benefit contracts with St. Luke’s and its physicians, efficient Jan. 1. Paramount despatched the termination discover someday after McLaren Well being Care Corp. acquired St. Luke’s Hospital.

McLearen and WellCare sued, claiming ProMedica’s motion was a part of “a scheme of monopolization or tried monopolization,” the courtroom ruling mentioned, and that it could restrict entry to care. Zouhary agreed, citing proof from McLaren stating that ProMedica has a 56% market share.

“There’s little doubt that ProMedica’s conduct was exclusionary,” he wrote.

In an emailed assertion, ProMedica mentioned it disagreed with the ruling and deliberate to file an attraction to the U.S. Court docket of Appeals for the Sixth Circuit.

“Within the interim, ProMedica intends to adjust to the courtroom’s order,” the assertion mentioned. “We’re at the moment within the strategy of informing all affected medical insurance members and stay dedicated to serving to our members entry the best high quality of care to enhance their well being and well-being.”


Author

Share