UnitedHealth Group subsidiary indicted for alleged ‘no-poach’ agreements

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, UnitedHealth Group subsidiary indicted for alleged ‘no-poach’ agreements

A UnitedHealth Group subsidiary was indicted on fees that it conspired with rivals to not poach one another’s senior-level staff.

Deerfield, Sick.-based Surgical Care Associates, which owns or operates greater than 230 ambulatory surgical procedure facilities and surgical hospitals throughout the nation, allegedly had so-called “no-poach” agreements with two different unnamed rivals, in accordance with a prison indictment filed Wednesday in a Texas federal court docket. SCA, which UnitedHealth’s Optum well being providers division acquired in 2017, was charged with two counts of conspiracy in restraint of commerce to allocate staff over the alleged seven-year scheme spanning Could 2010 to October 2017.

SCA mentioned in an announcement that it disagrees with the federal government’s place and it’ll defend itself towards the “unjustified allegations.”

“The place taken by the federal government on this matter represents a novel utility of the antitrust legal guidelines as they relate to worker recruitment, for which there isn’t any precedent or basis,” the group mentioned. “This matter includes alleged conduct seven years earlier than UnitedHealth Group acquired SCA and doesn’t contain any SCA ambulatory surgical procedure facilities, their joint house owners, doctor companions, present management or every other UnitedHealth Group corporations.”

SCA and its rivals would flip away in any other case certified candidates, in accordance with the indictment. In a single case, a senior human sources official at an SCA competitor wrote in an e mail to a recruiter “to not schedule a name w/ [candidate], thanks. She must apply for the job first. We can’t attain out to SCA people. Take any SCA people off the record.”

One other e mail from an SCA govt reads, “Placing two corporations in italics ([Company A] and [Company B]) – we will recruit junior folks (beneath Director), however our settlement is that we’d solely converse with senior executives if that they had informed their boss already that they need to depart and are trying.”

The Justice Division’s Antitrust Division and the Federal Commerce Fee issued steering for no-poach agreements in October 2016, indicating that they plan to pursue these circumstances criminally. No-poach agreements “remove competitors in the identical irredeemable method as agreements to repair product costs or allocate prospects, which have historically been criminally investigated and prosecuted as hardcore cartel conduct,” in accordance with the steering.

The Justice Division issued an announcement of curiosity in March 2019 in a high-profile class-action swimsuit involving Duke College Well being System and College of North Carolina Well being, claiming that a lot of these restrictions might suppress wages and advantages.


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