Motion to Dismiss Antitrust Complaint Granted
CHICAGO — McDermott Will & Emery is pleased to announce that on behalf of West Tennessee Healthcare (WTH), the Firm successfully moved to dismiss a complaint by a competitor hospital alleging various federal and state antitrust violations in connection with competition in the Tennessee health care market.
The federal judge agreed with McDermott Will & Emery's argument that WTH, as a private act metropolitan hospital authority, is cloaked with antitrust immunity because the anticompetitive effects of the allegedly unlawful conduct were a logical and foreseeable result of the broad powers conferred upon it by the Tennessee Legislature. The court declined to exercise jurisdiction over the supplemental state law claims and, accordingly dismissed those claims as well. The judge's ruling takes on added significance because the Tennessee Attorney General had intervened and filed a brief in support of the plaintiff, arguing that the state action immunity did not apply. The victory clarifies the scope of WTH's antitrust immunity and also allows WTH to continue to provide affordable and cutting edge healthcare services to patients in West Tennessee.
The McDermott, Will & Emery team advising WTH included antitrust partner David Marx, Jr., resident in the Firm's Chicago office.
WTH is a comprehensive health care organization. Anchored by 662-bed Jackson-Madison County General Hospital, the system, which includes hospitals in Bolivar, Camden, Trenton, Humboldt, and Milan, meets the health care needs of more than 500,000 persons residing in West Tennessee. Owned by Madison County and the City of Jackson, West Tennessee Healthcare is a quasi-governmental entity. WTH is known for its four centers of excellence Tennessee Heart Center, West Tennessee Cancer Center, Women and Children's Center, and West Tennessee Rehabilitation Center.
