Methodist Suing OSF for Claims of Unfair Insurance Deals
By: Eugene Daniel
Updated: February 5, 2013
PEORIA - There's
a battle brewing between the two largest hospitals in the River City.
Tuesday,
Methodist Medical Center filed an anti-trust lawsuit against its biggest
competitor.
The
lawsuit, filed in U.S. District Court, basically accuses OSF Healthcare Systems
of signing exclusive contracts that keep insurers from working with other hospitals.
The 39-page
document accuses OSF Healthcare Systems of forcing health insurers into signing
contracts to discourage insurers from working with competing hospitals.
It even
goes as far as accusing OSF of threatening to not work with an insurer or to charge
a penalty fee, if that insurer contracts with another hospital.
In the
lawsuit, Methodist says those exclusive contracts reduce competition, which
then hikes up the cost for health care and limits consumer choice.
Methodist
is asking for $100 million in damages.
Representatives
for Methodist Medical Center would not talk on camera.
OSF tells
us it hasn't had a chance to look at the lawsuit. So it does not have a
comment.
