Brentwood, Tenn.-based Community Health Systems and Jackson, Tenn.-based West Tennessee Healthcare have reached an agreement over a long-term antitrust dispute, according to a Jackson Sun report.
Regional Hospital of Jackson, which is owned by CHS, has tried to amend a 1996 Tennessee state law that protects private act hospitals from antitrust litigation. This protection covers Jackson-Madison County General Hospital, owned by WTH, and Regional Hospital said such protection gave it an unfair advantage.
Under the agreement, Jackson-Madison County General will not require that it be the sole provider in Tennessee's Madison County as a condition of entering network agreements with insurers. Existing contracts are unaffected, but new contracts issued by Jackson-Madison will no longer prohibit insurers from contracting with CHS' Regional Hospital.
In return, CHS and Regional Hospital agreed to drop the long-term effort to enact legislation to change the antitrust law.
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Regional Hospital of Jackson, which is owned by CHS, has tried to amend a 1996 Tennessee state law that protects private act hospitals from antitrust litigation. This protection covers Jackson-Madison County General Hospital, owned by WTH, and Regional Hospital said such protection gave it an unfair advantage.
Under the agreement, Jackson-Madison County General will not require that it be the sole provider in Tennessee's Madison County as a condition of entering network agreements with insurers. Existing contracts are unaffected, but new contracts issued by Jackson-Madison will no longer prohibit insurers from contracting with CHS' Regional Hospital.
In return, CHS and Regional Hospital agreed to drop the long-term effort to enact legislation to change the antitrust law.
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