Providence Antitrust Action
FOR IMMEDIATE RELEASE
For more information, please contact:
Athena Maris
athena@lloydmaris.com
503.236.3486
Providence Delay Forces Imaging Centers to Withdraw their Motion for a Preliminary Injunction and Request an Expedited Trial Date in their Antitrust Action Against the Healthcare Giant
Portland, Oregon - June 14, 2005. EPIC Imaging and Body Imaging Radiology yesterday withdrew their request for a preliminary injunction to stop Providence Health Systems from terminating them without cause from its insurance panels and, instead, petitioned the court for an expedited trial on the merits. The surprise move was dictated by the impracticality of wading through the several hundreds of pages Providence submitted to the court on June 1.
The motion prepared by EPIC and Body Imaging's attorney, Michael Haglund asserts, "[EPIC and Body Imaging] will ultimately submit comprehensive evidence to this Court demonstrating market power and abuse of that power by defendants. However, in order to present this evidence accurately and in a credible fashion, plaintiffs require additional time and discovery."
"We knew this might happen when we granted Providence's request for a delay," said attorney Michael Haglund, "but in the interest of fairness Drs. Warnock and Meunier felt compelled to take the risk."
On April 14th, EPIC Imaging and Body Imaging Radiology granted Providence's request to delay their termination date by sixty days in exchange for giving Providence more time to prepare its case. During those sixty days Providence amassed hundreds of pages of materials. EPIC and Body Imaging had less than two weeks to review it all and prepare an answer that would provide the court with adequate information for an informed ruling.
The key bone of contention is an economic report submitted by a Providence hired economist which attempts to significantly minimize Providence's share of the market. Much of the raw data upon which the report relies was only submitted to the imaging center's attorney within the last few days. "As we have gradually been able to obtain and analyze this data, it has become evident that the report's conclusions significantly understate Providence's actual percentage of the market. Unfortunately, the only way to adequately refute the data is to move forward with the discovery and deposition process," said Mr. Haglund.
Abandoning the request for an injunction will have no impact on the lawsuit itself other than to give the imaging centers the necessary time to refute the claims that Providence is a relatively minor player in diagnostic imaging in the Portland metropolitan area. The downside for the centers is that Providence is free to move forward with their plans to remove them from the preferred provider panels currently rented out by Providence to more than 100 independent insurance companies.
"We regret that Providence will be able to deny physicians and their patients access to our facilities while the antitrust suit is being decided but given the time and effort necessary to present an accurate response, it is the only reasonable course of action," said Dr. Gerald Warnock, Medical Director of EPIC Imaging. "Our primary interest is the truth," added Dr. Paul Meunier, Medical Director of Body Imaging Radiology.
The imaging centers are requesting a trial date in late fall of this year and that the hearing currently scheduled for June 20 th be used to establish discovery and dispositive motion deadlines as well as the expedited trial date.
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