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Carolinas HealthCare System battles on against Feds

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Carolinas HealthCare System, North Carolina’s largest hospital chain, has urged a federal judge to reject the U.S. Justice Department’s suit that alleges that the system imposed anti-competitive contract requirements on insurers. The system asserted that ¬†a federal appeals court has ¬†rejected the government’s arguments involving similar contract arrangements in a case involving American Express.

Modern Healthcare reported what led to the Carolinas case:

“The 10-hospital system has steering provisions in contracts with Aetna Health of the Carolinas, Blue Cross and Blue Shield of North Carolina, Cigna Healthcare of North Carolina and United Healthcare of North Carolina. Those insurers make up 85% of the commercially insured market in the Charlotte area, the Justice Department said.

“In exchange for the steering provisions, Carolinas provided the insurers with discounted rates for its facilities and services. Without the arrangements, the health system claims the insurers would take advantage of its inclusion in their networks.”

To read the Modern Healthcare article, please hit this link.

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