This matter considered competition in the healthcare industry and the legality of certain contracting practices.
An insurance company and health system sued a large insurance company for allegedly engaging in anti-competitive practices in violation of antitrust laws. Counsel retained Cornerstone Research to support Sean Nicholson of Cornell University as an economic expert.
The plaintiff claimed that the defendant used its dominant market position to force hospitals to enter into contracts that required hospitals to provide the defendant the lowest prices, which had the effect of limiting discounts provided to other insurers and limiting competition. The case raised important issues regarding competition in the healthcare industry and the effects of certain contracting practices, which were subsequently banned by the state legislature.
This matter settled before trial.