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A recent case in the Northern District of California presents a reminder that hospital systems need to consider antitrust issues when negotiating multi-hospital contracts with health plans. Unfortunately, even when hospitals reach mutually satisfactory agreements with health plans, the contracts are still subject to attack by third parties that view the contracts as anticompetitive.
In
Sidbe v. Sutter Health, Sutter negotiated a series of systemwide contracts with major health plans (each of which was large and sophisticated and would presumably have significant bargaining power).  Although the health plans were presumably happy with the contracts that they negotiated, the legality of the contracts was challenged in a consumer class action in which the class representatives alleged that, by bargaining to have its hospitals included in the health plan networks, Sutter violated antitrust laws by depriving the ....

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