A North Carolina judge is seeking answers from HCA Healthcare by July 25 in a class-action lawsuit alleging the Nashville, Tenn.-based hospital operator engaged in anti-competitive tactics.
A group of Western North Carolina residents sued the company last year, alleging HCA used a monopoly in Asheville, N.C., to raise prices for inpatient and outpatient care after purchasing Asheville-based nonprofit Mission Health in 2019.
The judge assigned to the case has asked HCA and the plaintiffs in the case to file supplemental briefs by July 25 that answer three questions.
First, the judge wants to know whether plaintiffs are required to allege that HCA, Mission Health and other named defendants possess sufficient market power as to inpatient and outpatient services in "outlying regions," which is the third relevant market identified in the complaint.
Second, the judge wants to know whether it is permissible for plaintiffs to rely on Medicare and Medicaid data to establish HCA's market power in the relevant markets.
Third, the judge is asking whether the plaintiffs have satisfied pleading requirements related to claims that defendants excluded competition by using anti-steering or "gag clauses" in contracts with commercial health insurers.