Jersey City, N.J.-based CarePoint Health Systems was partially denied a request to delay its antitrust lawsuit against West Orange, N.J.-based RWJBarnabas Health by a New Jersey federal magistrate judge due to the health system's Nov. 3 filing for Chapter 11 protection, Law360 reported Nov. 5.
Here are five things to know:
1. CarePoint accused RWJBarnabas of conspiring to remove competition, particularly related to three CarePoint-operated hospitals in Hudson County, N.J., in a lawsuit filed Sept. 6, 2022. The lawsuit alleged that RWJBarnabas worked with Horizon Blue Cross Blue Shield and real estate players to drive traffic to CarePoint's competing emergency rooms without proper health department approval.
2. RWJBarnabas' motion to dismiss the lawsuit was rejected by U.S. Judge Evelyn Padin on Nov. 17. She said the "complaint contains allegations supporting an inference of antitrust injury" and that CarePoint has "plausibly alleged a conspiracy spanning from RWJ's entry into the relevant market and continuing through more recent conduct and ongoing harm."
3. On Nov. 4, CarePoint notified U.S. Magistrate Judge Cathy Waldor of its Chapter 11 filing and requested to postpone the status conference and motion hearing set for Nov. 7 regarding the lawsuit. Ms. Waldor ruled that it was unnecessary to postpone the hearing, Law360 reported.
4. "If CarePoint believes this case is an asset with value, it should prosecute it," RWJBarnabas said in a letter obtained by Law360. "If not, it should drop it. Until the case is dismissed, either voluntarily or by court order, Barnabas is entitled to a case that proceeds towards resolution. We have previously explained the prejudice to Barnabas of being subject to frivolous claims left in limbo."
5. While Ms. Waldor ruled to move the hearing forward, she opted to reschedule CarePoint's motion to remove RWJBarnabas's legal counsel, Proskauer, as conflict of interest due to CarePoint being a former client of the law firm.
Becker's has reached out to both CarePoint and RWJBarnabas for comment and will update this story should more information become available.