Boffa Surgical Grp. LLC v. Managed Healthcare Assocs. LTD. — Dec. 2015 (Summary)

ANTITRUST

Boffa Surgical Grp. LLC v. Managed Healthcare Assocs. LTD.
No. 1–14–2984 (Ill. App. Ct. Dec. 23, 2015)

The Appellate Court of Illinois affirmed the dismissal of antitrust and tortious interference claims brought by a surgical group, and two of its general surgeons, against a physician hospital organization (“PHO”) and an independent practice association (“IPA”). The PHO and the IPA provided health maintenance and management association services for patients at the local hospital. Although the surgeons retained their clinical privileges at the hospital, they were excluded from the managed care network.

The Appellate Court of Illinois held that the surgical group and the surgeons failed to state a claim under Illinois’ antitrust law because the complaint failed to include factual details about the “who, when, or how of the purported conspiracy or how it resulted in a restraint of trade.” Critical to the court’s analysis was the fact that there are 21 competing hospitals within a short distance and the surgeons had privileges at each of those facilities. The court likened the managed care network to a staffing arrangement, which the court said it would not “micromanage,” and the court concluded that, without more, the arrangement did not result in an unreasonable restraint of trade. With regard to the tortious interference claim, the appellate court found the surgical group’s failure to name a specific third party with whom they had a business expectancy precluded recovery.