Providence Antitrust Action
FOR IMMEDIATE RELEASE
For more information, please contact:
Athena Maris
athena@lloydmaris.com
503.236.3486
EPIC Imaging & Body Imaging Radiology Seek Injunction to Stop Providence Health Systems from Limiting Patient and Physician Choice in and Access to Diagnostic Imaging Services
Portland, OR, April 4, 2005 --With the words, "After 41 years of providing imaging and radiology services to the Portland area, I am deeply disappointed to have to be here today," Dr. Gerald Warnock, founder and Medical Director of EPIC Imaging with Dr. Paul Meunier, Medical Director of Body Imaging Radiology, announced the filing in Federal Court today of an injunction and lawsuit against Providence Health Systems. "To protect our patients' and their physicians' access to imaging services of their choice, I believe I have no choice but to seek an immediate injunction in federal court against Providence Health Systems' harmful actions," Dr. Warnock concluded.
Providence Health Systems informed EPIC Imaging and Body Imaging Radiology that, effective May 1, 2005, their long-standing contracts as preferred providers of imaging services will be terminated without cause. In a mass mailing to Portland area physicians, Providence acknowledged that the centers had "provided excellent patient care over the years" but they had determined it was in the "best interest" of their customers to consolidate imaging in their own facilities. "Doctors know what is in the best interest of their patients and patients know where they are comfortable. Denying a patient or their physician choice is not in anyone's best interest but Providence's," said Dr. Meunier.
In addition to their own Providence insurance holders, the contract termination adversely impacts over 750,000 area patients covered by 116 independent insurance carriers which Providence controls via its rented provider panels. The Providence-controlled plans include carriers like Aetna and Cigna as well as certain Medicare patients. "This is a significant share of the Portland market that Providence is seeking to control. They market themselves as providing choice. But, they just don't tell you that the only "choice" you have is their facilities," says Dr. Meunier.
Both Drs. Warnock and Meunier worry about the potential impact on their thousands of patients who annually have had their mammograms at either EPIC or Body Imaging. EPIC was the first imaging center in the Portland area to offer digital mammography. This state-of-the-art technology and attendant expert consultations have attracted a large following of women. In fact, one recent patient comment card left at EPIC said, "I have had my mammogram here [EPIC Imaging] for several years now - digital is so great. My mom died of metastistic breast cancer, so I want the best. And, I am writing a letter to Providence to appeal their decision not to use you." Warnock and Meunier both report receiving dozens of similar notes and phone calls since Providence patients were notified of the impending termination. "After May 1st, they will have to go to a Providence facility whether they like it or not if they want their health insurance to cover the cost. Mammography is a very personal experience. I worry women will skip their mammograms if they can't go where they are comfortable," Dr. Warnock said.
"To add insult to injury," says Dr. Meunier, "imaging costs will increase for Providence patients. They [Providence] terminated all their competition and then gave themselves a pay raise!" Days after sending out their termination notice, Providence Health Systems announced a 6% increase for their radiology and imaging services. They also plan to open two new outpatient imaging centers just blocks from EPIC Imaging East and Body Imaging. "I find it ironic that Providence noted a desire 'to achieve affordability and efficiencies' as their reason for termination while raising prices and building centers next door to those which in their own words provide excellent patient care," said Dr. Warnock.
Dr. Warnock, a nationally recognized proponent in the advancement of imaging and radiology technology, is concerned about the region's possible loss of leadership in imaging innovation. "By shutting out competition, controlling access and monopolizing choice in the market, Providence has no incentive to stay abreast of or offer state-of-the-art technology or high level customer service. In fact, the CT scanner Providence is now installing in their new facility is the same model EPIC recently 'decommissioned'. The CT scanner EPIC installed to replace the outmoded scanner is a state-of-the-art 64 detector model, opening up new capabilities in Cardiac imaging," Dr. Warnock said. Warnock is proud of his company's string of technological "firsts" in imaging equipment and services provided to the Portland area over the past four decades. More than 20 years ago, EPIC introduced the region's first MRI unit, nearly two years ahead of any hospital. The company was also the first to offer digital mammography to the area and the first to use the new PET/CT molecular imaging technology that is transforming the way cancer treatment is being diagnosed and treated.
Mike Haglund, both companies' legal counsel said, "This morning we have filed a lawsuit and request for an injunction in federal court under the nation's antitrust laws. Those laws are designed to protect the consumer by ensuring free and fair competition. This is not an action we wanted to take, but Providence's unfair business practices threaten to monopolize the Portland imaging market and restrict patient and physician choices for diagnostic imaging services. We believe that's unfair and a disservice to the patients and physicians in our community."
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