Prime Healthcare Servs. v. Serv. Emps. Int’l Union (Summary)

Antitrust

Prime Healthcare Servs. v. Serv. Emps. Int’l Union, Civil Action No. 11-cv-2652-GPC-RBB (S.D. Cal. July 25, 2013)

The United States District Court for the Southern District of California granted a motion to dismiss a hospital management company’s claims against a health plan and an unincorporated labor association for violations of Sections 1 and 2 of the Sherman Act.  The hospital management company claimed that the defendants unlawfully entered into labor partnership agreements in a market domination strategy to eliminate the hospital management company from the market.  The court found that the written agreements between the defendants clearly indicated that they had no intention of attempting to dominate the market and push competitors out of business. The court also found that the hospital management company failed to prove market power or injury to competition.