Posted on: Tuesday, September 11, 2001
Lawsuit against healthcare advocacy groups dismissed
By Frank Cho
Advertiser Staff Writer
A federal judge yesterday dismissed a $65 million antitrust lawsuit against three Hawai'i physician and patient advocacy groups that were accused of organizing a boycott against a Mainland healthcare company that was trying to offer coverage to Island residents.
Las Vegas-based International Healthcare Management, the parent company of the now-defunct Health Hawai'i Network, filed the suit in November 2000, alleging the company lost millions of dollars after the three groups strongly opposed the physician contract proposed by the new health plan.
The Hawai'i Coalition for Health, the Hawai'i Medical Association and the Queen's Physician Group were named as defendants in the suit along with officers from the three groups.
"This means that we can speak out against physician contracts that we think are not good for patients without fear of being sued. I think this case will have national implications," said Richard Miller, a spokesman for the Hawai'i Coalition for Health.
Miller, who is also a law professor at the University of Hawai'i, said the decision will prevent other lawsuits seeking to stop groups like the coalition from speaking out on healthcare issues.
A spokesman for International Health could not be reached for comment.
International Health took over Pacific Benefit Services Inc., the provider network of the failed Pacific Group Medical Association, in 1997. But when the company proposed a new contract for physicians, it was opposed by the three groups.
The Las Vegas company alleged the three groups tried to act as an advocate for the physicians and tried to negotiate a contract for them, which the suit said was prohibited under federal antitrust laws.
The three groups denied the charge and filed a motion for summary judgment citing what they said was a lack of evidence in the case.
Federal Judge Helen Gillmor ruled to dismiss the suit with prejudice. It was not clear yesterday if International Health intends to appeal the decision.
