Antitrust Victory for Health Care Client

SPRINGFIELD, MO — On Tuesday, November 12, Judge Gary Fenner of the U.S. District Court for the Western District of Missouri granted summary judgment in favor of McDermott Will & Emery client St. John's Health System, dismissing the complaint of Woman's Clinic and Thomas D. McClain Orthopedic Surgery LLC alleging that St. John's had violated federal and state antitrust laws.  The plaintiffs, physicians formerly employed by St. John's, brought their lawsuit in May 2001 claiming that St. John's injured competition in Springfield, Missouri by entering into preferred provider contracts with area payors and enforcing non-competition covenants agreed to by the plaintiffs.

Judge Fenner said the plaintiffs' allegations against St. John's were not supported by the evidence.  "After reviewing the voluminous exhibits submitted by Woman's Clinic, the court concludes that no genuine issue of material fact exists as to whether the activities of St. John's violate the Sherman Act antitrust provisions or Missouri state law."  The court's ruling validated St. John's position that its contracts with payors and non-compete agreements with health care providers have not resulted in any injury to competition in the Springfield area.

Working in collaboration with co-counsel in St. Louis and Springfield, McDermott Will & Emery, led by David Marx, Jr., a partner in the Firm's Antitrust Group, served as lead antitrust counsel on behalf of St. John's.  The Firm's legal team representing St. John's included David Marx, Jr., Sandra Muhlenbeck and Jennifer Schott.

St. John's Health System is a 300-physician, 7,000-employee integrated health system, which is a member of the Sisters of Mercy Health System-St. Louis.  In addition to its health networks, St. John's maintains 100 specialty and multi-specialty clinics in southwest Missouri and northwest Arkansas.  The Health System also includes eight pharmacies,14 ambulance locations, two fitness centers and six home care service centers.

McDermott, Will & Emery has one of the ten largest antitrust practices in the world with antitrust lawyers in Chicago, Düsseldorf, London, Munich, New York and Washington, D.C.  The Firm's Antitrust and Competition Practice Group includes partners who have held senior positions in the U.S. Department of Justice, the Federal Trade Commission, and State Attorney General's Offices for Antitrust.  The Firm's Health Law Department is one of the United States' largest health law practices, with more than 110 attorneys resident throughout its U.S. offices.  Our health lawyers provide legal services in every segment of the health care industry and helps to shape many federal, state and local laws and regulations.

McDermott Will & Emery

McDermott Will and Emery